VOO vs FXAIX: ETF or Fidelity Mutual Fund in 2026?

Q: Is VOO or FXAIX cheaper?

FXAIX is cheaper on fee alone: 0.015% annual expense ratio versus VOO's 0.03%. On a $10,000 position that is $1.50 per year for FXAIX and $3.00 per year for VOO. Over 30 years on $100,000 at an 8% return, the fee gap compounds to roughly $1,100, which is real but small relative to the total balance. For most investors, availability and account type matter more than the fee differential.

Q: Can I buy FXAIX outside of Fidelity?

In most cases, no. FXAIX is Fidelity's proprietary mutual fund and is only available commission-free inside a Fidelity account. Some brokers (Schwab, E*TRADE) list it but charge a transaction fee of $30 to $75 per buy, which usually wipes out the fee savings versus VOO. If you do not have a Fidelity account, VOO is the practical choice since it trades commission-free at every major broker.

Q: Is FXAIX or VOO better for a Roth IRA?

If your Roth IRA is at Fidelity, FXAIX is slightly better: lower expense ratio, automatic dollar-amount investing, and no intraday price volatility to worry about. If your Roth IRA is at any other broker, use VOO. In tax-advantaged accounts the ETF tax-efficiency advantage does not apply, so the decision really comes down to which broker you use and whether you prefer ETF-style or mutual-fund-style mechanics.

Q: What are the main differences between VOO and FXAIX?

Structure: VOO is an exchange-traded fund (ETF) and FXAIX is an open-end mutual fund. Trading: VOO trades intraday like a stock; FXAIX prices once per day at the 4:00 PM ET NAV. Portability: VOO is available at every broker, FXAIX is primarily available at Fidelity. Minimum: VOO requires the price of one share (or $1 for fractional at many brokers); FXAIX has no minimum at Fidelity. Fee: FXAIX charges 0.015%, VOO charges 0.03%. Both hold the same roughly 500 S&P 500 stocks in the same market-cap weights.

Q: Is VOO more tax-efficient than FXAIX?

Yes, in taxable brokerage accounts. ETFs including VOO use the creation-redemption mechanism to flush out appreciated securities without triggering shareholder capital gains distributions. Mutual funds including FXAIX cannot do this, which means FXAIX can occasionally pass through small capital gains distributions in taxable years. FXAIX has been unusually tax-efficient for a mutual fund, but VOO is still structurally better. In a Roth IRA, traditional IRA, 401(k), or HSA, this advantage disappears and either is fine.

Updated Apr 22, 2026 · 3 min read

See the Difference: VOO vs FXAIX Calculator

Plug in a starting amount, optional monthly contribution, and number of years. We'll show you what you'd have in VOO vs Fidelity 500 Index Fund using actual historical returns with dividends reinvested.

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VOO Winner

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FXAIX Winner

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How this works

Results use monthly total-return data (adjusted close) from Yahoo Finance, with dividends reinvested (DRIP) always on. Both ETFs are modeled over the exact same window and with identical contributions, so the only variable is fund performance. This calculator is for illustrative purposes only. Past performance does not guarantee future results. Not investment advice.

Click Compare to see how $10,000 in VOO stacks up against FXAIX over 10 years.

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Where They Actually Differ

Fee

VOO

$3.00

FXAIX

$1.50

Annual fee per $10,000 invested.

FXAIX at 0.015% is literally half VOO's 0.03%. Over 30 years on $100k at 8%, the extra drag on VOO adds up to about $1,100. Real money, but modest next to the total balance.

Structure

VOO

ETF · intraday

FXAIX

Mutual fund · once-daily NAV

VOO trades like a stock all day. FXAIX prices once at 4:00 PM ET. For long-term investors that's irrelevant. For anyone who wants to see a live price or set a limit order, VOO is the only choice.

Availability

VOO wins

VOO trades commission-free at every major U.S. broker. FXAIX is commission-free only at Fidelity. Schwab, E*TRADE, and others charge $30–$75 per buy for non-proprietary mutual funds, which erases the fee savings for regular contributors.

Buying a round dollar amount

FXAIX more flexible

FXAIX lets you invest any dollar amount at Fidelity — $50, $100, $2,137 — no leftover cash. VOO requires whole shares unless your broker offers fractional (Fidelity, Schwab, Robinhood do; many others don't). A true "set it and forget it" $200/month auto-invest is slightly smoother in FXAIX.

$10,000 Invested at Inception

Growth of $10,000 from 2011 through 2026-04-22, dividends reinvested.

VOO turned $10,000 into $73,602 (+14.76%/yr)

FXAIX turned $10,000 into $75,848 (+15.00%/yr)

Difference after 14.5 years: $2,246 in favor of FXAIX.

Monthly adjusted-close data via Yahoo Finance. Past performance does not guarantee future results.

Up nextVOO vs SPLG

Frequently Asked Questions

Is VOO or FXAIX cheaper?

FXAIX is cheaper on fee: 0.015% vs VOO's 0.03%. On a $10,000 position that's $1.50 vs $3.00 per year. Over 30 years on $100k at 8%, the gap compounds to about $1,100 — real but small next to a six-figure balance. Most of the time, availability matters more than the fee gap.

Can I buy FXAIX outside of Fidelity?

Usually no. FXAIX is Fidelity's proprietary fund and is only commission-free at Fidelity. Some brokers list it but charge a $30–$75 transaction fee per buy, which wipes out the fee savings for regular contributors. If you're not at Fidelity, VOO is the practical choice — commission-free everywhere. Read our how to buy VOO guide to see which brokers support fractional VOO for dollar-based investing.

Is FXAIX or VOO better for a Roth IRA?

If your Roth is at Fidelity, FXAIX is slightly better — lower fee, automatic dollar-amount investing, no intraday volatility to time. If your Roth is at any other broker, use VOO. In tax-advantaged accounts the ETF tax-efficiency advantage does not apply, so it comes down to broker and mechanics.

What are the main differences between VOO and FXAIX?

Structure (ETF vs mutual fund), trading (intraday vs once-daily 4 PM NAV), portability (every broker vs Fidelity-only), minimum (one share or $1 fractional vs $0), and fee (0.03% vs 0.015%). Both hold the same S&P 500 stocks in identical weights.

Is VOO more tax-efficient than FXAIX in a taxable account?

Yes. VOO uses the ETF creation-redemption mechanism to flush appreciated securities without triggering capital gains distributions to shareholders. Mutual funds like FXAIX can't. FXAIX has been unusually tax-efficient for a mutual fund, but VOO is structurally better in taxable accounts. In a Roth or traditional IRA, 401(k), or HSA, the advantage vanishes.

At a Glance

Assets (AUM)

VOO $1.51T

FXAIX $605B

Inception

VOO Sep 7, 2010

FXAIX Feb 17, 1988

Dividends

VOO Quarterly

FXAIX Semi-annual

Data as of 2026-04-17. Sources: Vanguard, State Street, Morningstar, Yahoo Finance.

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