VFIAX vs VOO: Comparing S&P 500 Funds
This article compares VFIAX vs VOO — Vanguard’s 500 Index Fund Admiral Shares Mutual Fund (VFIAX) and Vanguard’s S&P 500 ETF (VOO).
Both are passively managed index funds, popular with passive investors looking for near-market total returns and yields below the best high-yield savings accounts.
Index mutual funds and exchange-traded funds (ETFs) track market indexes, such as the Dow Jones Industrial Average or the Russell 2000.
VFIAX 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.
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Table of Contents
Bottom Line Upfront (BLUF)
Before I get into the details of VFIAX vs VOO, it’s essential to keep the following in mind:
- VFIAX is a mutual fund. VOO is an ETF. That is the most significant difference between the funds, which impacts how investors buy them.
- VFIAX has a $3,000 minimum investment. VOO has a $0.01 minimum investment.
- Aside from equity security type, VFIAX and VOO are virtually identical.
- Investors should be asking instead of VFIAX vs VOO: “Should I buy a Vanguard mutual fund or ETF?”
- VFIAX should only be purchased if the investor has an account with Vanguard, prefers the hands-off utility of mutual funds, and has $3,000 or more to invest.
- VOO is the appropriate choice for brokers other than Vanguard.
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 Vanguard. Consider the information in the following links to be the authoritative data source.
- Vanguard 500 Index Fund Admiral Shares (VFIAX)
- Vanguard S&P 500 Index ETF (VOO)
VFIAX 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 VFIAX vs VOO:
- VFIAX has a $3,000 minimum investment. The VOO minimum investment is $0.01.
- VOO has a slightly lower expense ratio, but the small discrepancy is insignificant.
- VFIAX is older and larger than VOO. Both metrics are unimportant in a decision between the funds.
Benchmark Index
VFIAX 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 VFIAX vs VOO over ten years. Scroll right on mobile.
Performance has been identical 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 VFIAX and VOO pay quarterly dividends 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.
VFIAX
As of 02/01/2025 | |||
---|---|---|---|
# | Symbol | Company | Weight |
1 | AAPL | Apple Inc. | 0.07604 |
2 | NVDA | NVIDIA Corp. | 0.06617 |
3 | MSFT | Microsoft Corp. | 0.06295 |
4 | AMZN | Amazon.com Inc. | 0.04124 |
5 | META | Facebook Inc. Class A | 0.02564 |
6 | TSLA | Tesla Inc. | 0.02265 |
7 | GOOGL | Alphabet Inc. Class A | 0.02222 |
8 | AVGO | Broadcom Inc. | 0.02175 |
9 | GOOG | Alphabet Inc. Class C | 0.01821 |
10 | BRK-B | Berkshire Hathaway Inc. Class B | 0.01669 |
VOO
As of 02/01/2025 | |||
---|---|---|---|
# | Symbol | Company | Weight |
1 | AAPL | Apple Inc. | 0.07604 |
2 | NVDA | NVIDIA Corp. | 0.06617 |
3 | MSFT | Microsoft Corp. | 0.06295 |
4 | AMZN | Amazon.com Inc. | 0.04124 |
5 | META | Facebook Inc. Class A | 0.02564 |
6 | TSLA | Tesla Inc. | 0.02265 |
7 | GOOGL | Alphabet Inc. Class A | 0.02222 |
8 | AVGO | Broadcom Inc. | 0.02175 |
9 | GOOG | Alphabet Inc. Class C | 0.01821 |
10 | BRK-B | Berkshire Hathaway Inc. Class B | 0.01669 |
Learn more:
Vanguard Mutual Fund or ETF?
If you have an account with Vanguard and prefer or are used to mutual funds, go with VFIAX. Mutual funds allow investors to set and forget capital gains and dividend reinvestment, making them a powerful tool for automated investing.
Mutual fund buyers will need a $3,000 minimum to invest.
ETFs do not pay capital gains like many mutual funds, making them more tax-efficient if purchased in a taxable account. VFIAX does not pay capital gains like typical mutual funds.
Vanguard 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 Vanguard.
Mutual fund trades occur after the market closes.
Investors with accounts at non-Vanguard brokers should be wary of owning Vanguard 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 ETFs vs mutual funds.
Fund Equivalents
Here are a few close equivalents for both funds
- VFIAX = SPY, VOO, FXAIX
- VOO = VFIAX, SPY, VFIAX
The VFIAX Fidelity equivalent is FXAIX, the Fidelity ® 500 Index Fund. Investors with an account at Fidelity who prefer mutual funds can consider FXAIX as a VFIAX alternative.
The VOO mutual fund equivalent is Vanguard’s S&P 500 Index Fund Admiral Shares (VFIAX).
The VOO Fidelity equivalent is FXAIX, the Fidelity ® 500 Index Fund.
Fidelity does not have a VOO or VFIAX 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.
For example, if you have an account with and investing app, you’d invest via ETFs instead of mutual funds.
If your account is with Vanguard, you may prefer to use the index funds VTSAX and VFIAX because mutual funds are slightly easier to reinvest capital gains and dividends.
Best Broker to Buy VFIAX or VOO
Vanguard is an excellent choice for long-term retirement investors. You’re in good hands if your IRA or employer-sponsored plan is with either broker.
Fidelity is also excellent. I transferred from Vanguard to Fidelity because Fidelity became my new employer plan administrator.
View my favorite online brokers here.
Conclusion
For Vanguard customers, deciding between VFIAX vs VOO comes down to mutual fund vs ETF. Which do you prefer to own?
Also, do you plan to invest more than $3,000? If not, VFIAX is not an option. Go with VOO.
Otherwise, there is no significant difference between investing in VFIAX vs VOO. Even if the dividend yields, holdings, and expense ratios differ slightly in data feeds, the main relevant difference is the type of security.
Security type does not impact risk, fees, or distributions in this case. Expect identical performance between these funds.
Investors wanting to own the largest blue chip U.S. stocks with one fund can choose VFIAX or VOO.
Own VFIAX 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 VFIAX 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, 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.
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