FXAIX vs VOO: Comparing S&P 500 Funds
This article compares FXAIX vs VOO — Fidelity’s S&P 500 Index Mutual Fund (FXAIX) and Vanguard’s S&P 500 ETF (VOO).
Both are passively managed index funds, popular with passive investors looking for near-market returns.
Index mutual funds and exchange-traded funds (ETFs) track market indexes, such as the Dow Jones Industrial Average or the Russell 2000.
FXAIX and VOO track the most widely-watched U.S. stock market index: Standard & Poor’s 500 (S&P 500). The S&P 500 contains just over 500 large-cap stocks.
Both funds are market-cap-weighted, meaning the percentage of each holding aligns with the relative size of the companies in the indexes. The largest companies comprise the largest percentage of the funds, and the smallest comprise the smallest.
Table of Contents
Bottom Line Upfront (BLUF)
Before I get into the details of FXAIX vs VOO, it’s essential to keep the following in mind:
- FXAIX is a mutual fund. VOO is an ETF. That is the main significant difference between the funds.
- Aside from equity security type, FXAIX and VOO are virtually identical.
- Both are excellent, low-fee options to consider for your portfolio.
- Investors should be asking instead of FXAIX vs VOO: “Should I buy a Fidelity mutual fund or an ETF?”
- FXAIX should only be purchased if the investor has an account with Fidelity AND prefers the hands-off utility of mutual funds.
- VOO is the appropriate choice for all brokers other than Fidelity.
- The FXAIX Vanguard equivalent is VFIAX.
Please note that funds update their prospectuses regularly. The information referenced in this article will change over time.
The best resource for both funds is the respective company’s websites.
Here are links to the most updated resources at Fidelity and Vanguard. Consider the information in the following links to be the authoritative data source.
- Fidelity’s S&P 500 Index Fund (FXAIX)
- Vanguard’s S&P 500 Index ETF (VOO)
FXAIX vs VOO Comparison
Side-by-Side
Here’s a side-by-side comparison of both ETFs. Scroll right on mobile.
A few noticeable differences comparing FXAIX vs VOO:
- The above table confirms the funds are virtually identical.
- FXAIX has a slightly lower expense ratio, which gives the mutual fund a slight (and insignificant) performance edge.
- FXAIX is much older and larger than VOO. Both metrics are insignificant in a decision between the funds.
- The dividend payout schedules for the funds vary slightly.
- VOO has a higher share price, though the share price is not a worthwhile metric for investors.
Benchmark Indexes
FXAIX and VOO track the S&P 500 Index, one of the most widely-watched stock indexes worldwide.
Visit this page for the latest information about the index.
The S&P 500 Index is a float-adjusted market cap-weighted index, meaning the largest stocks make up a proportionately high percentage of the index. Lower market cap stocks make up a proportionately lower percentage of the index.
A selection committee of financial market professionals chooses which stocks go into the index. The focus is primarily on large-cap stocks that are representative of the U.S. economy.
The committee does not try to “pick stocks” for market outperformance. Instead, they look at company size, stock liquidity, share float, and profitability, and it fits the index’s goal to reflect the broad, large-cap marketplace accurately.
Performance Chart
Here is a daily updated chart of a $10,000 investment performance in FXAIX vs VOO over ten years. Scroll right on mobile.
The funds have performed nearly identically over the past ten years. The future performance of the two funds should track each other without significant divergence.
See the table above for up-to-date one-, three-, and five-year average annual performance records.
Dividend Payout Schedules
Both FXAIX and VOO pay quarterly dividends.
FXAIX investors receive quarterly dividend payments in April, July, October, and December.
VOO investors receive quarterly dividend payments in March, June, September, and December.
More resources:
Top Ten Holdings
Here are the top ten holdings for each index fund. Visit the links at the beginning of the article for the most updated lists.
FXAIX
As of 11/30/2024 | |||
---|---|---|---|
# | Symbol | Company | Weight |
1 | AAPL | Apple Inc. | 0.07124 |
2 | NVDA | NVIDIA Corp. | 0.06773 |
3 | MSFT | Microsoft Corp. | 0.06264 |
4 | AMZN | Amazon.com Inc. | 0.03611 |
5 | META | Facebook Inc. Class A | 0.02572 |
6 | GOOGL | Alphabet Inc. Class A | 0.02079 |
7 | GOOG | Alphabet Inc. Class C | 0.0172 |
8 | BRK-B | Berkshire Hathaway Inc. Class B | 0.01713 |
9 | AVGO | Broadcom Inc. | 0.01639 |
10 | TSLA | Tesla Inc. | 0.01438 |
VOO
As of 11/30/2024 | |||
---|---|---|---|
# | Symbol | Company | Weight |
1 | AAPL | Apple Inc. | 0.07124 |
2 | NVDA | NVIDIA Corp. | 0.06773 |
3 | MSFT | Microsoft Corp. | 0.06264 |
4 | AMZN | Amazon.com Inc. | 0.03611 |
5 | META | Facebook Inc. Class A | 0.02572 |
6 | GOOGL | Alphabet Inc. Class A | 0.02079 |
7 | GOOG | Alphabet Inc. Class C | 0.0172 |
8 | BRK-B | Berkshire Hathaway Inc. Class B | 0.01713 |
9 | AVGO | Broadcom Inc. | 0.01639 |
10 | TSLA | Tesla Inc. | 0.01438 |
Learn more:
Fidelity Mutual Fund or ETF?
If you have an account with Fidelity and prefer or are used to mutual funds, go with FXAIX. Mutual funds allow investors to set and forget capital gains and dividend reinvestment, making them a powerful tool for automated investing.
Fidelity account holders who prefer a more active investing role may choose VOO. Returns, fees, and holdings are virtually identical. The difference is how you buy and sell an ETF vs how you buy and sell a mutual fund.
ETFs trade like stocks. With ETFs, you place a market or limit order to purchase the security, and dividends are typically not automatically reinvested.
Trades usually occur during market hours. Some brokers enable automated divided reinvestment, including Fidelity.
Mutual fund trades occur after the market closes.
Investors with accounts at non-Fidelity brokers should be wary of owning Fidelity mutual funds. Many online brokers do not offer mutual funds or charge a feed to buy and sell them.
The VOO ETF is more readily available at any online broker, most of which are trade-commission-free.
Read more about mutual funds vs ETFs.
Fund Equivalents
Here are a few close equivalents for both funds.
- FXAIX = SPY, VOO, VFIAX
- VOO = VFIAX, SPY, FXAIX
The FXAIX Vanguard index fund equivalent is VFIAX, the Vanguard S&P 500 Index Fund. Investors with an account at Vanguard who prefer mutual funds can consider VFIAX as an FXAIX alternative.
The VOO mutual fund equivalent is also Vanguard’s S&P 500 Index Fund Admiral Shares (VFIAX).
The VOO Fidelity mutual fund equivalent is FXAIX, the Fidelity ® 500 Index Fund.
Fidelity does not have a VOO or FXAIX ETF equivalent.
The State Street SPDR ETF equivalent for both funds is the SPDR S&P 500 ETF Trust (SPY).
Customers of online brokers who do not provide mutual fund options or charge fees for mutual funds should use the VOO or SPY ETFs.
Active investors typically use ETFs for trading purposes or to buy and hold indexes when they can’t access index mutual funds from their current brokerage account.
If your account is with Vanguard, you may prefer to use the index funds VTSAX or VFIAX because mutual funds are slightly easier to reinvest capital gains and dividends.
Best Broker to Buy FXAIX or VOO
Vanguard and Fidelity are excellent choices for long-term retirement investors. You’re in good hands if your IRA or employer-sponsored plan is with either broker.
Check out my list of best brokers to find the bet fit for you.
Conclusion
Deciding between FXAIX vs VOO comes down to mutual fund vs ETF. Which do you prefer to own?
Otherwise, there is no significant difference between investing in FXAIX vs VOO. Even if the dividend yields, holdings, and expense ratios differ slightly, the only relevant difference is the type of security.
Any variation in performance can be attributed to fees, but the fees on both funds are so low they are insignificant in consideration between them.
Investors wanting to own the largest blue chip U.S. stocks with one fund can choose FXAIX or VOO.
Own FXAIX or VOO in retirement accounts to save on dividend taxation. Dollar-cost average to avoid trying to time the market.
Purchase VOO at any online broker.
Please reply with your questions regarding FXAIX vs VOO in the comments section below. Include any requests you have about adding more detail to this article.
Additional Resources
Disclosure: The author is long SCHD, VTI, FXAIX, VTSAX, FSKAX, and multiple stocks in the top 10 holdings of each fund. I’ve chosen both mutual funds and ETFs for myself for my own portfolio. Please evaluate both funds in the context of your personal investment objectives before choosing which is right for you. This article is not a recommendation to buy or sell either fund at a given time.
Craig is a former IT professional who left his 19-year career to be a full-time finance writer. A DIY investor since 1995, he started Retire Before Dad in 2013 as a creative outlet to share his investment portfolios. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Read more.
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