The Vanguard Industrials Index Fund ETF (VIS) and the Fidelity MSCI Industrials Index ETF (FIDU) are two of the largest industrials sector ETFs and two of the most popular among individual investors. Many investors compare VIS vs FIDU because they are so similar, although differences are difficult to find.
A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.
The Short Answer
VIS and FIDU track the same index and there is no material difference between the funds. They are identical and interchangeable in my opinion.
The Longer Answer
Historical Performance: VIS vs FIDU
VIS was launched back in 2004, while FIDU was launched on October 21, 2013. Since then, the two funds have performed identically, with an annualized difference of only .14%! The cumulative performance differential over that timeframe has only been about 2.7% too! From a performance perspective, VIS and FIDU are identical and interchangeable.
Portfolio Exposures: VIS vs FIDU
Both VIS and FIDU track the same index, the MSCI US Investable Market Industrials 25/50 Index. Consequently, the two funds have identical geographic, market-cap, and industry exposures.
Geographic Exposure
Both VIS and FIDU hold essentially 100% stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical geographic exposures.
Market Cap Exposure
As mentioned above, both funds track the same index and have materially identical market cap exposures.
Sector Exposure
VIS and FIDU are industrials ETFs and so their holdings are 100% industrials stocks.
Practical Factors: VIS vs FIDU
Transaction Costs
As ETFs, both FIDU and VIS are free to trade on many platforms. Bid-ask spreads for both VIS and FIDU are extremely low and volume is sufficient to prevent most individual investors from “moving the market.”
Expenses
FIDU has a lower expense ratio at .08%, compared to VIS’s .10%. Although VIS is 25% more expensive, we’re talking about 2 basis points. At these low levels of expense ratios, the difference doesn’t matter.
Tax Efficiency & Capital Gain Distributions
Neither VIS nor FIDU has ever made a capital gains distribution and I do not expect them to make any moving forward. In my opinion, these two funds are equally tax-efficient.
From a tax-loss harvesting perspective, investors may want to avoid using these two funds as substitutes for one another since they could be considered “substantially identical” (given that they track the same index and are identical in many ways).
Bottom Line: VIS vs FIDU
VIS and FIDU are identical in nearly every way. I would not spend any time comparing them or trying to decide which is better.
