Use the table above to answer the following:

A) Comment on the difference in turnover and the impact this would have on pre-tax and after-tax returns. Which investment is likely to have the greater tax penalty? Why?

B) Compare the short- and long-term performance history of the two funds. Performance of each fund is reported NET of the expense ratio (e.g. after fees). Do fees explain the performance difference over the short and long-term?

C) Vanguard literature states The investments or benchmarks you chose fall into different investment categories. This comparison may not provide complete or accurate results.

Is the passively managed Vanguard Fund (VTI) an appropriate comparator or benchmark against which to evaluate the performance of Fidelitys actively managed fund - FMAGX?

As part of your response, consider differences in Price / Earnings; Price / Book; Earnings Growth Rate; which are metrics used to categorize stock funds as being core, growth or value. Growth portfolios typically have higher Price / Earnings & Price / Book ratios vs. core portfolios, which in turn have higher ratios than value portfolios. Also consider the sector differences especially in the more growth-oriented sectors such as technology & healthcare; and the value-oriented sectors such as financials, industrials, energy and utilities.