FXAIX vs. VFIAX – Which is Best For You?

FXAIX vs. VFIAX Key Characteristics

You can use the table below to compare the key characteristics of these mutual funds:

Metrics	FXAIX	VFIAX
1-Year Annual Return	24.56%	27.08%
5-Year Annual Return	15.03%	15.87%
Expense Ratio	0.015%	0.04%
Dividend Yield	1.25%	1.28%
Number of Holdings	507	503
ETF Equivalent	SPY	VOO

You can compare FXAIX and VFIAX using the TradingView chart below. Ensure to click the “ADJ” button at the bottom right of the chart to adjust the data for dividends! While TradingView doesn’t support mutual funds, you can change them to the ETF equivalent to see the returns in real time.

The chart below uses SPY and VOO, which are both S&P 500 ETFs with nearly identical returns. SPY has a slightly higher expense ratio, which is likely why the performance is slightly lower.

Overview of FXAIX

FXAIX, the Fidelity 500 Index Fund, is a mutual fund managed by Fidelity Investments. This fund aims to provide investment results that correspond to the total return of stocks of large-capitalization U.S. companies. It seeks to invest most of its assets in 80% of S&P 500 companies. Therefore, it differs from VFIAX in the sense that it isn’t directly trying to replicate the S&P 500 index. Fidelity doesn’t offer an S&P 500 ETF, so the closest ETF equivalents for FXAIX are SPY or VOO.

Overview of VFIAX

The Vanguard 500 Index Fund Admiral Shares, known by its ticker symbol VFIAX, is a mutual fund managed by Vanguard. VFIAX is essentially the mutual fund comparison to its ETF counterpart, VOO. While both are great investments, VOO has a lower expense ratio than VFIAX, plus ETFs are taxed more favorably.

This fund is designed to track the performance of the S&P 500 Index, which comprises 500 of the largest and most established companies in the United States.

Performance Comparison of FXAIX vs. VFIAX

The performance of FXAIX and VFIAX over the long run should be nearly identical. FXAIX has a lower expense ratio which means you will be charged less fees to invest in it.

FXAIX and VFIAX will slightly differ in holdings due to their investment objectives. VFIAX directly tracks the S&P 500 index, while FXAIX simply invests in around 500 large-cap U.S. companies. The difference in holdings is generally quite minimal.

FXAIX vs. VFIAX Dividend Yield

Both FXAIX and VFAIX pay nearly identical dividend yields from the companies the funds hold. Yields will differ slightly, but it really isn’t a game changer when deciding between these two funds.

FXAIX vs. VFIAX Expense Ratios

FXAIX has an expense ratio of 0.015%, while VFIAX has an expense ratio of 0.04%. This means investing in FXAIX is cheaper and will save you a bit of money over time.

Expense ratios measure how much funds charge for managing your assets, and are expressed as a percentage of the fund’s assets per year. The expense ratio is important to consider, but both VFIAX and FXAIX have some of the lowest in the industry.

FXAIX vs. VFIAX Holdings

VFIAX seeks to replicate the S&P 500 index, which means it will essentially hold the same stocks as the index does. FXAIX will normally invest 80% of its assets in the S&P 500 stocks, but it isn’t trying to replicate it directly.

However, both funds will generally hold around 500 companies. FXAIX holds 507 securities, while VFIAX holds 503. 

FXAIX vs. VFIAX – Bottom Line

VFIAX is best for investors looking to invest in the S&P 500 index, while FXAIX is best for those looking to minimize the expense ratio of their investments. Both funds are great, but consider checking out some of our other ETF comparisons out to continue your research.