The Most Famous Fund Manager’s Fund Charges You 0.74%. The 401(k) Version Charges 0.45%
Will Danoff's flagship fund charges retail investors a fee that quietly bleeds returns year after year, but buried inside most workplace 401(k) menus is a lesser-known share class running the identical portfolio for significantly less.
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Fidelity Contrafund (FCNTX) is the fund that made Will Danoff a household name in active management. For four decades, the flagship large-cap growth vehicle has drawn retail money on the strength of one manager’s record, and it now holds roughly $180 billion in net assets. If you own FCNTX in a taxable Fidelity account or a rollover IRA, you own it for a specific reason: exposure to Danoff’s concentrated bets on names like Advanced Micro Devices, Airbnb, and Align Technology. While that case for owning the fund is fair, what is less fair is what you pay for it. FCNTX’s retail share class carries a 0.74% expense ratio, while the exact same portfolio — run by the same manager — sits inside a cheaper share class that most retail holders cannot buy directly.
A Share Class Nobody Talks About
The cheaper version is the K6 share class, ticker FLCNX, and it charges 0.45%. What you get is the same manager, the same holdings, and the same strategy. The K6 top-ten reads nearly identically to the retail fund: 16.9% weight in Advanced Micro Devices, 23.0% in Align Technology, 5.7% in Agnico Eagle Mines, matching FCNTX to within basis points. That said, the gap is structural. K6 shares are reserved for large employer-sponsored retirement plans, and the fund holds about $37.5 billion in assets almost entirely sourced from workplace 401(k) menus.
Performance confirms the fee gap flows through to results. Over the last year, FCNTX returned 17.88% while FLCNX returned 16.89%, a rounding-error split driven by daily NAV timing rather than strategy. Over five years, FLCNX actually edges ahead at 91.21% versus 89.13% for FCNTX. The takeaway is that the lower fee compounds.
Step One: Check Your 401(k) Menu
Before you consider any fund swap, check whether your employer’s plan offers FLCNX. Fidelity is the recordkeeper for 26,200 corporate defined contribution plans covering 24.8 million participants, and Contrafund K6 is a common lineup option on those menus. If it is on yours, moving your Contrafund allocation from the retail IRA into the 401(k) K6 sleeve buys you the same portfolio for 29 basis points less in annual drag. On a $100,000 position, that is roughly $290 a year retained inside the fund, compounding for as long as you hold.
If You Cannot Get K6, Consider SCHG
Most retail Contrafund holders cannot access FLCNX. For them, a good substitute would be the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG), a passive large-cap growth ETF with roughly $61 billion in net assets and a published expense ratio of 0.04%. The exposures overlap heavily with what Danoff actually owns. SCHG’s largest positions include NVIDIA at 11.01%, Apple at 9.83%, Microsoft at 7.17%, and Advanced Micro Devices at 2.93%, the same mega-cap growth names that drive much of the Contrafund’s returns.
It is worth acknowledging the historical edge. Over ten years, SCHG returned 445.01% versus 388.60% for FCNTX. Contrafund has trailed the passive large-cap growth index over the full decade despite Danoff’s reputation, and the fee gap of roughly 70 basis points explains a meaningful chunk of that shortfall. Year to date, Contrafund is ahead at 10.44% versus 8.11% for SCHG, a reminder that active picks can win in any given year. Over long holding periods, though, the fee differential is doing a lot of the heavy lifting.
What You Give Up
SCHG is not a Contrafund clone. You lose Danoff’s concentrated off-benchmark bets, the small biotech positions like Spyre Therapeutics and Alnylam, and the gold-miner exposure through Agnico Eagle. You also change tax treatment. Selling FCNTX in a taxable account can trigger capital gains, and Contrafund itself has historically distributed sizeable year-end gains that SCHG’s ETF structure largely avoids. If your Contrafund shares sit inside an IRA, the swap is friction-free. In a taxable account, run the tax math before selling.
Where This Leaves You
If you want Danoff’s active management, the cheapest legal path is FLCNX inside a 401(k) that offers it. If your plan does not, SCHG delivers the same mega-cap growth exposure at one-eighteenth the retail Contrafund fee, with a decade of stronger total returns to back it up. Paying 0.74% for a portfolio you can approximate for 0.04% is a choice worth reexamining.
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Ryne Mauck is an investment writer covering exchange-traded funds, portfolio strategy, and opportunities across public markets. His investment approach emphasizes fundamental analysis, valuation, and disciplined risk-taking.
Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide readers with clear, research-driven insights into investment fundamentals, portfolio construction, and risk management. His goal is to help investors make more informed decisions while maintaining a disciplined long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science.
