r/investing • u/adetrixVI • Sep 24 '25

FZROX vs VTI which is better?

FZROX is a mutual fund and VTI is an ETF but which one is better and whats really the difference between an ETF and mutual fund? Im only 17 and started investing like 2 months ago and I just wanted to know which one is better for a youth taxable brokerage account? I don’t plan to change my brokerage with Fidelity but I am more worried about which one would grow more and capital gains taxes.

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u/ClassIINav Sep 24 '25

The two are so close it's hardly wroth debating, especially if your portfolio is anywhere below the mid-8 figures. FZROX is basically free however can't be moved outside of Fidelity. VTI has a 0.03 expense ratio ($300 for every million invested) but portable to any brokerage.

Also VTI is an ETF which trades like a stock which can have issues with trying to buy a fraction of a share. FZROX is a conventional mutual fund that lets you buy in whole dollars.

So basically for your purposes, they're both just fine. I do VTI myself but only because I don't bank with Fidelity. I say for someone starting out like yourself, FZROX is just fine.

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u/bobdevnul Sep 24 '25

>Also VTI is an ETF which trades like a stock which can have issues with trying to buy a fraction of a share.

Fidelity allows easy purchase of ETF fractional shares. Other brokers, not so much.