FXAIX vs. VOO: Exploring the Key Differences Between Two Popular ETFs

ETFs are a great way to add instant diversification to your portfolio. These investment vehicles pool investor funds to buy a chunk of assets such as stocks or bonds. Among the plethora of ETF options available, FXAIX and VOO stand out as popular choices for investors looking to gain exposure to the S&P 500 index.

Long-term investors should consider making these Fidelity mutual funds the core of their portfolio. FNILX and QQQM are often described as some of the best index funds for beginner investors. But are they the cheapest? When it comes to expenses, FXAIX boasts one of the lowest expense ratios in the market, making it an attractive option for cost-conscious investors.

Our pick for the best overall mutual fund is the Fidelity 500 Index Fund. With an expense ratio of just 0.015%, FXAIX ranks as one of the cheapest funds in the market. S&P 500 index funds, like FXAIX, provide investors with diversified exposure to the heart of the U.S. stock market.

Fidelity Investments, a financial services provider, offers a wide range of mutual funds catering to various investment goals. FXAIX is one of the flagship funds offered by Fidelity, providing investors with exposure to the 500 largest companies in the U.S. stock market.

For the quarter, the fund produced a return of -2.16% versus the -3.28% result of the benchmark, the Russell 2000® Index. Despite the negative return, FXAIX outperformed its benchmark during the period, showcasing its potential for delivering solid performance in various market conditions.

In 2023, the performances of the most widely held U.S. stock funds came down to one key factor: exposure to growth stocks. As investors continue to seek growth opportunities in the market, funds like FXAIX offer a way to gain exposure to high-growth companies within the S&P 500 index.