Mutual Fund Comparison

FXAIX vs VFIAX

Fidelity vs Vanguard S&P 500 index funds. Same 500 stocks — but Fidelity is actually cheaper.

Updated for 2026. Real expense ratios and minimum investments.

0.015%

FXAIX Fee

0.04%

VFIAX Fee

TL;DR

FXAIX and VFIAX are both excellent S&P 500 index funds. FXAIX is slightly cheaper (0.015% vs 0.04%) and has no minimum investment. VFIAX requires $3,000 but can convert to VOO (ETF) tax-free. Use whichever is at your current brokerage. The fee difference is $2.50 per year per $10,000 — do not switch brokerages over this.

Side-by-Side Comparison

Two S&P 500 funds from two great brokerages.

Feature	FXAIX (Fidelity)	VFIAX (Vanguard)
Full Name	Fidelity 500 Index Fund	Vanguard 500 Index Fund Admiral Shares
Index Tracked	S&P 500	S&P 500
Expense Ratio	0.015% ($1.50 per $10,000/year)Edge	0.04% ($4.00 per $10,000/year)
Minimum Investment	$0 — no minimum whatsoeverEdge	$3,000 for Admiral Shares
Fund Provider	Fidelity Investments	Vanguard
Inception Date	February 17, 1988 (originally Spartan 500 Index)	November 13, 2000 (Admiral share class; original fund launched 1976)
ETF Equivalent	No Fidelity S&P 500 ETF equivalent (Fidelity focuses on mutual funds)	VOO (Vanguard S&P 500 ETF, 0.03%) — can convert tax-free at VanguardEdge
Automatic Investing	Seamless at Fidelity — any dollar amount, any schedule	Seamless at Vanguard — any dollar amount, any schedule
Fractional Shares	Mutual fund — always invest exact dollar amounts	Mutual fund — always invest exact dollar amounts
Securities Lending	Fidelity uses securities lending to subsidize costs — part of why the fee is so low	Vanguard does limited securities lending

The Fee Difference in Perspective

FXAIX charges 0.015%. VFIAX charges 0.04%. The difference is 0.025% per year. Let us put that in perspective:

$10K:$2.50/year difference
$100K:$25/year difference
$500K:$125/year difference
$1M:$250/year difference

At $1 million invested, the difference is $250 per year. Meaningful, but probably not worth the hassle of switching brokerages (especially if selling in a taxable account would trigger capital gains). For new money at Fidelity, FXAIX is the clear choice. For existing VFIAX holders, the switching cost usually outweighs the savings.

Glen's Take

Both of these funds charge less than a meal at Chipotle per year on a $10,000 investment. The fact that we are debating 0.015% vs 0.04% is a testament to how good investors have it in 2026. Use whichever is at your brokerage. If starting fresh, Fidelity has a slight edge on cost and $0 minimum. Vanguard has the ETF conversion advantage (VFIAX → VOO tax-free). Both are excellent brokerages.

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What About Schwab?

If you are at Charles Schwab, their S&P 500 index fund is SWPPX (Schwab S&P 500 Index Fund) with an expense ratio of 0.02% and no minimum investment. It slots right between FXAIX (0.015%) and VFIAX (0.04%).

For a complete comparison of all three brokerages, see the Fidelity vs Vanguard vs Schwab guide.

Frequently Asked Questions

Is FXAIX better than VFIAX?

By the numbers, FXAIX has a slight edge: it charges 0.015% vs VFIAX's 0.04% and has no minimum investment vs VFIAX's $3,000 requirement. Both track the same S&P 500 index and hold the same stocks. The performance difference is negligible — we are talking about 0.025% per year, which is $2.50 per $10,000 invested. The practical answer: use whichever one is at your current brokerage. If you are at Fidelity, buy FXAIX. If you are at Vanguard, buy VFIAX. Do not switch brokerages over this difference.

How can Fidelity charge less than Vanguard?

Fidelity makes money through other channels — securities lending, cash sweep products, margin lending, and their broader financial services business. They can afford to offer their index funds at razor-thin margins (or even at a loss) to attract and retain customers. Vanguard operates at cost (they are owned by their fund shareholders), but their cost structure may be slightly higher. Fidelity also launched zero-fee index funds (like FZROX and FNILX) as loss leaders to attract new customers.

Should I switch from VFIAX to FXAIX?

Probably not, unless you are already moving to Fidelity for other reasons. The difference is 0.025% per year — $2.50 per $10,000 invested. If you hold VFIAX in a taxable account, selling would trigger capital gains taxes that would likely exceed decades of fee savings. If you hold VFIAX in a tax-advantaged account (IRA), you could switch without tax consequences, but the savings are so small it is not worth the hassle. If you are starting fresh and choosing a brokerage, Fidelity's lower fees and $0 minimum are a legitimate advantage.

What about Fidelity's zero-fee funds (FZROX, FNILX)?

Fidelity offers zero-expense-ratio index funds: FNILX (Fidelity ZERO Large Cap Index) and FZROX (Fidelity ZERO Total Market Index). These are genuinely free — 0.00% expense ratio. The catch: they track Fidelity's own proprietary indexes, not the S&P 500. The differences are minor (FNILX tracks a very similar set of large-cap stocks), but they are not identical to the S&P 500. For most investors, the difference between FNILX (0.00%) and FXAIX (0.015%) is immaterial. Use whichever you prefer.

Can I hold FXAIX at Vanguard or VFIAX at Fidelity?

Technically, you can hold mutual funds from one company at another brokerage, but it often involves transaction fees. Fidelity may charge a transaction fee to buy VFIAX, and Vanguard may charge to buy FXAIX. It is almost always better to use the in-house fund at your current brokerage: FXAIX at Fidelity, VFIAX at Vanguard. If you use Schwab, their equivalent is SWPPX (Schwab S&P 500 Index Fund, 0.02% expense ratio).

What is the ETF equivalent of FXAIX?

Fidelity does not offer an ETF equivalent of FXAIX. If you want a Fidelity S&P 500 ETF, it does not exist in their lineup. Vanguard's VFIAX can be converted to VOO (the ETF share class) tax-free — this is a unique advantage of Vanguard's dual share-class structure. If you are at Fidelity and want an S&P 500 ETF, you can buy VOO or IVV commission-free at most brokerages.

The Bottom Line

FXAIX and VFIAX are essentially the same product from two different companies. Both track the S&P 500, both charge almost nothing, and both will deliver virtually identical returns over any time period. FXAIX has a slight cost advantage (0.015% vs 0.04%) and no minimum investment.

The right answer: use whichever one is at your brokerage. Fidelity → FXAIX. Vanguard → VFIAX. Schwab → SWPPX. Then invest consistently and stop worrying about 0.025%.

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