FXAIX vs VTI - Comparison tool | Tickeron (2024)

FAQs

Is FXAIX or VTI better? ›

To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FXAIX is a Buy and VTI is a Buy.

Currently there's no upside potential for FXAIX, based on the analysts' average price target. Is FXAIX a Buy, Sell or Hold? Fidelity 500 Index Fund has a consensus rating of Moderate Buy which is based on 399 buy ratings, 100 hold ratings and 7 sell ratings. What is Fidelity 500 Index Fund's price target?

While both VOO and FXAIX offer nearly identical investment outcomes by tracking the S&P 500, the decision between them hinges on individual investor priorities. FXAIX excels at cost-efficiency and tax-friendliness, while VOO provides superior trading flexibility.

Overall, you might save money at Fidelity if you trade options, but Vanguard will be cheaper if mutual funds are your focus. The key difference is that Fidelity is low-cost for a wide range of investor types, while Vanguard is a great low-cost solution aimed primarily at buy-and-hold investors.

On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.78% per year. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to March 31, 2024. Total value March 31, 2024 for Contrafund was $751,828 compared to $327,447 for the S&P 500 Index.

If you'd like more control over the asset allocation of your 401(k) and are comfortable rebalancing regularly and adjusting that allocation over time, a more targeted fund, such as FXAIX, is a great pick, as it gives you low-cost exposure to some of the biggest names in the U.S. stock market.

FXAIX (Fidelity 500 Index Fund) and VOO (Vanguard S&P 500 ETF) are two investment options that offer to return similar returns to the S&P 500. In large part, these two investment options are very similar, except FXAIX is a mutual fund offered by Fidelity, and VOO is an exchange-traded fund (ETF) offered by Vanguard.

This strategy is well-diversified. As of December 2023, its top 10 holdings represented 31% of the portfolio, generally lower than peers.

Our recommendation for the best overall S&P 500 index fund is the Fidelity 500 Index Fund. With a 0.015% expense ratio, it's the cheapest on our list. And it doesn't have a minimum initial investment requirement, sales loads or trading fees. Over the last 10 years, FXAIX has returned an annualized 12.82%.

Is FXAIX closed to new investors? ›

Shares of the fund are only available for purchase by mutual funds for which FMR or an affiliate serves as investment manager. This fund is closed to new investors.

Because both are market-cap weighted, VTI still has nearly identical top holdings as VOO but in lower weights, as some of the allocation is redistributed to mid and small caps.

Its 10-year average return, as of July 2023, is 12.85%. The fund's five managers have an average tenure of 7.5 years managing the fund, with the longest-serving at 14 years. FXAIX is inexpensive, and it performs well—and it comes from one of the most trusted names in low-cost investing.

While the two ETFs follow the same strategy, they earn different ratings. VOO earns a top rating of Gold, while SPY earns the next best rating of Silver. Almahasneh says the reason is fees and inefficiencies of the unit investment trust structure.

Alternatives to VTI and ITOT

One ETF I favor is the Schwab U.S. Broad Market ETF (SCHB), which tracks the Dow Jones U.S. Broad Stock Market Index. Interestingly, this was the same index used by VTI until April 22, 2005.

VTI and VOO are both good picks for the long-term investor in need of a core U.S. equity fund. The main difference between the two is VTI's small and mid-cap holdings. If that exposure is appealing, VTI is your choice. Otherwise, go with VOO.