FXAIX vs VOO: Comparing S&P 500 Funds (2024)

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.

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.
• ETFs are available to purchase from any online broker. I recommend M1 Finance, which is best for dividend investing and dividend reinvestment.

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 IndexETF (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:

• VOO ETF Dividend History

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.

Learn more:

• VOO’s Top 50 Holdings

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.

For example, if you have an investing account with M1 Finance, you’d invest via ETFs instead of mutual funds.

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.

I recommend another broker for a more modern user experience that can also serve banking, borrowing, and spending needs.

Long-term investors may prefer an online broker better for dollar cost averaging and dividend reinvestment.

I’m a big fan of the online brokerage M1 Finance. M1 Finance is a reliable, robust, no-fee online broker for beginner and intermediate investors. It’s easy to get started.

As your investing skills and portfolio mature, M1 is one of the best platforms to scale.

They also offer an integrated checking account and low borrowing rates. Read my complete M1 Finance review here.

M1 Finance does not offer mutual funds. However, ETFs are plentiful. It’s my favorite online broker for everyday investing.

The platform is more intuitive than old-school brokers because it’s built on a modern technology platform.

You create portfolio “pies” that contain all the stocks and ETFs you want to own and in what percentages. Simply add an ETF to a pie and add funds to your account.

Learn More about M1 Finance

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

• SCHD vs VOO
• SPY vs VOO
• VOO vs VTI
• VOO vs IVV
• FSKAX vs FXAIX
• VOO vs VFIAX
• VOO vs QQQ
• FXAIX vs FNILX

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.