Wealthy PotFSPSX vs FTIHX: One of These Owns No Emerging Markets
These two Fidelity funds both sound like the international slice of a portfolio, and they are priced closely enough that the fee will not decide it. But they are not substitutes. FSPSX tracks MSCI EAFE, which covers developed markets only. FTIHX tracks MSCI ACWI ex-USA IMI, which covers developed and emerging markets. If you hold FSPSX believing you own "international", you own considerably less of it than you think.
The Short Answer
- Want one fund to cover everything outside the U.S.? FTIHX. Developed and emerging markets, large through small cap, in a single holding.
- Deliberately want developed markets only, or your plan offers nothing else? FSPSX. It is a fine EAFE fund at a low cost, as long as you know what it excludes and fill the gap elsewhere if you want to.
The Gap Most People Miss
Per Fidelity's own fund descriptions:
- FSPSX normally invests at least 80% of assets in stocks in the MSCI Europe, Australasia, Far East Index. That is EAFE, and the name is a fairly literal description of its scope.
- FTIHX normally invests at least 80% of assets in securities in the MSCI ACWI ex USA Investable Market Index, and its stated objective covers "foreign developed and emerging stock markets".
So the difference is not a matter of degree. One index deliberately excludes an entire category of markets that the other deliberately includes.
FSPSX vs FTIHX Side by Side
| Feature | FSPSX | FTIHX |
|---|---|---|
| Full name | Fidelity International Index Fund | Fidelity Total International Index Fund |
| Index | MSCI EAFE (Europe, Australasia, Far East) | MSCI ACWI ex USA Investable Market Index |
| Emerging markets | No | Yes |
| Canada | No | Yes |
| Smaller companies | Limited | Yes, the IMI index reaches down the size scale |
| Expense ratio | 0.035% | 0.06% |
| Minimum | $0 | $0 |
| Fund size | About $88 billion | About $27 billion |
What EAFE Leaves Out
EAFE was built decades ago as a developed-markets benchmark for investors outside North America, and its construction still reflects that. Two consequences matter today.
No emerging markets. That means no China, India, Taiwan, Brazil or any other emerging economy. For a fund whose job is "the rest of the world", that is a substantial hole, and it is the single most common surprise for people who check what they actually own.
No Canada. EAFE covers Europe, Australasia and the Far East. North America is excluded by design, and since the U.S. is handled by your domestic fund, Canada simply falls between the two.
Whether that matters is a genuine question rather than an obvious error. Some investors deliberately avoid emerging markets for volatility, governance or political-risk reasons. That is a defensible position. The problem is holding FSPSX without realising it takes that position for you.
The Fee Difference
FSPSX charges 0.035% and FTIHX charges 0.06%, a difference of 0.025% a year. On $100,000 that is $35 against $60, so $25 a year.
Read that the right way round. The cheaper fund is cheaper partly because it covers less: developed markets are less costly to index than emerging ones. You are not getting the same product at a discount, you are getting a narrower product at a lower price. Twenty-five dollars a year is not a sensible reason to leave emerging markets out of a portfolio, and it is not a sensible reason to put them in either. Decide on the exposure, then accept the fee that comes with it.
If Your 401(k) Only Offers FSPSX
This is common, because EAFE funds have been standard in workplace plans for a long time. You have three reasonable options.
Accept it. Developed international exposure is the large majority of non-U.S. market value anyway. Holding EAFE and nothing else is not a mistake, it is a choice to skip emerging markets.
Fill the gap in the plan. If your plan also offers a dedicated emerging-markets fund, a modest allocation alongside FSPSX approximates total-international coverage.
Fill the gap outside the plan. If you also have an IRA, put the emerging-markets piece there, where the fund menu is unrestricted.
What is worth avoiding is adding FTIHX on top of FSPSX and treating them as two different holdings. FTIHX already contains developed markets, so the combination mostly doubles your developed exposure and adds a small emerging slice, which is probably not what you intended.
Which One Fits You
Pick FTIHX if you want one line item to be your entire non-U.S. allocation and would rather not audit what is missing. It is the more complete building block, and the extra cost is small.
Pick FSPSX if you have deliberately decided against emerging markets, if you are assembling international exposure from separate developed and emerging pieces, or if it is what your plan offers.
Either way, the useful move after reading this is to open your account and check which one you actually hold. A surprising number of people find they have been running a developed-only international allocation for years without having chosen it.
FAQ
Does FSPSX include emerging markets?
No. It tracks MSCI EAFE, which covers developed markets in Europe, Australasia and the Far East only.
Does FSPSX include Canada?
No. EAFE excludes North America entirely.
Is FTIHX a complete international fund?
It tracks MSCI ACWI ex USA IMI, which covers developed and emerging markets across the size range outside the United States. That is as close to complete non-U.S. coverage as a single fund gets.
Should I own both?
Generally no. FTIHX already contains what FSPSX holds, so owning both mainly overweights developed markets.
Which is cheaper?
FSPSX at 0.035% against FTIHX at 0.06%. The gap largely reflects the narrower coverage rather than better value.
This article is for general information and is not investment advice. Fund figures and index descriptions were taken from Fidelity's published fund pages on 2026-09-21 and can change; confirm current figures before you invest.