Wealthy PotFXAIX vs VFIAX: The Same S&P 500, Two Price Tags
FXAIX and VFIAX are the flagship S&P 500 index mutual funds of Fidelity and Vanguard. They track the same index, so they own the same 500-plus companies in the same proportions. What separates them is price and access: FXAIX charges 0.015% with no minimum; VFIAX charges 0.04% with a $3,000 minimum. For most people the right choice is simply the one sold at the brokerage where their money already sits.
The Short Answer
- Same portfolio: both track the S&P 500 Index.
- FXAIX is cheaper: 0.015% against 0.04%, a $2.50 a year difference on $10,000.
- FXAIX has no minimum; VFIAX needs $3,000 to start.
- Both are mutual funds, priced once a day after the market closes.
FXAIX vs VFIAX Side by Side
| Feature | FXAIX | VFIAX |
|---|---|---|
| Full name | Fidelity 500 Index Fund | Vanguard 500 Index Fund Admiral Shares |
| Index | S&P 500 | S&P 500 |
| Expense ratio | 0.015% | 0.04% |
| Minimum initial investment | $0 | $3,000 |
| Wrapper | Mutual fund | Mutual fund |
What the Fee Gap Is Worth
FXAIX's fee is well under half of VFIAX's. In dollars, the gap is 0.025% a year: $25 on $100,000, $250 on $1 million. Over decades it compounds, because the money you do not pay in fees stays invested. But it is small next to the costs of switching badly. Selling VFIAX in a taxable account to buy FXAIX would realize any gains, and the tax bill would usually wipe out many years of fee savings. You can test the long-run effect yourself in the compound interest calculator by running the same balance at two slightly different returns.
Your Broker Usually Decides
These funds are built for their own platforms. FXAIX is Fidelity's fund and is cheapest to buy at Fidelity; VFIAX is Vanguard's and is cheapest to buy at Vanguard. At other brokers, either one may carry a purchase fee or not be available at all. So in practice the question is rarely "which fund?" and usually "where is my account?"
If you ever move brokers, both funds can generally be transferred in kind, so you do not have to sell them. What changes is the cost of adding to them at the new broker. If you want an S&P 500 fund you can buy anywhere for free, an ETF such as VOO or IVV does that; see FXAIX vs VOO and VFIAX vs VOO.
Which One Fits You
- Choose FXAIX if your account is at Fidelity, or you are starting with less than $3,000.
- Choose VFIAX if your account is at Vanguard and you meet the $3,000 minimum.
- Keep what you have in a taxable account. The fee gap rarely justifies realizing gains.
- Do not hold both. They are the same index; owning both just splits one position in two.
FAQ
Are FXAIX and VFIAX the same?
They hold the same index, the S&P 500. They differ in fee (0.015% vs 0.04%), minimum ($0 vs $3,000) and provider.
Which is cheaper, FXAIX or VFIAX?
FXAIX, at 0.015% a year against VFIAX's 0.04%.
Can I buy FXAIX at Vanguard or VFIAX at Fidelity?
Sometimes, but you may pay a transaction fee or find the fund unavailable. Each is cheapest at its own company.
Should I switch from VFIAX to FXAIX?
In a retirement account there is no tax cost, so the lower fee can be worth it. In a taxable account, selling at a gain usually costs more than the fee saving.
Is FXAIX or VFIAX better than VOO?
Not better, just different wrappers. VOO is an ETF that trades during the day at most brokers for no commission; the mutual funds price once a day.
This article is for general information and is not investment advice. Fund figures were taken from Fidelity's and Vanguard's published fund pages and can change; confirm current figures before you invest.