S&P 500 Showdown: FXAIX vs VOO for Long-Term Investors
When it comes to investing, the S&P 500 is often the go-to. There are two popular options for this approach: FXAIX vs. VOO. One is a fund offered by Fidelity, the other an ETF by Vanguard. Both track the 500 largest U.S. companies, pursuing similar gains. However, they operate differently, cost differently, and are best suited for different situations. Let’s look at them and see what works best for your goals.
What Are FXAIX and VOO?
- FXAIX is a mutual fund that mirrors the S&P 500. It launched in 2010 and is run by Fidelity.
- VOO is an ETF launched the same year by Vanguard. It also tracks the S&P 500.
The big question in the FXAIX vs VOO debate isn’t what they track but how they’re structured. One trades like a share (ETF), the other trades once a day (mutual fund).
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Fees and Costs: What You Pay
Fees matter because they reduce your returns. FXAIX charges about 0.02% per year. On $10,000, that’s just $2. VOO costs 0.03%, or about $3. In dollar terms, the difference is small. But over decades and large sums, even pennies add up.
Both funds are far cheaper than many others; FXAIX is in the lowest fee tier, while VOO is still very low-cost. But yes, FXAIX wins in pure fee terms...................Read More
Source: Bdnut
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