FXAIX vs VOO: 5 Key Differences [2026 Update]

FEBRUARY 14, 2026MIKA L.
FXAIX vs VOO: 5 Key Differences [2026 Update]

Choosing between FXAIX and VOO comes down to tiny differences that can matter over decades of compounding. Both funds track the S&P 500, but they differ in expense ratios, tax treatment, broker availability, and trading mechanics. Data from Fidelity's fund research shows FXAIX carries a 0.015% expense ratio — one of the lowest available for any S&P 500 fund. Whether you're optimizing a retirement account or a taxable brokerage, pairing this decision with solid expense tracking tools and free budget templates can sharpen your long-term strategy. Let's get started!

Quick Answer

FXAIX and VOO both track the S&P 500. FXAIX is a mutual fund with a 0.015% expense ratio, available exclusively at Fidelity, with no minimum investment and no trading flexibility. VOO is an ETF with a 0.03% expense ratio, tradable at any broker intraday. FXAIX wins on cost; VOO wins on flexibility.

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Summary Table

Item Name Price Range Best For Website
Performance ~13.8% annualized (10-yr) Long-term growth investors See details
Expense Ratio 0.015% (FXAIX) vs 0.03% (VOO) Cost-conscious investors Visit Site
Tax Efficiency No direct cost difference Taxable brokerage account holders Visit Site
Accessibility and Trading $0 minimum (FXAIX) / ~$550/share (VOO) Fidelity or Vanguard users Visit Site
Best for 2026 0.015%–0.03% expense ratio All passive index investors See details

FXAIX vs VOO: 5 Key Differences [2026 Update]

Below you'll find detailed information about each option, including what makes them unique and their key benefits.

1. Performance

When comparing FXAIX vs VOO, historical performance is the most direct measure investors examine. Both funds track the S&P 500 index, so returns are nearly identical — FXAIX has occasionally edged VOO by a few basis points annually due to its slightly lower expense ratio and Fidelity's internal cash management practices.

Key comparisons:

  • 10-year annualized returns differ by less than 0.05% between the two
  • FXAIX is a mutual fund (priced once daily); VOO is an ETF (trades intraday)
  • Both mirror the same 500 large-cap U.S. stocks, so long-term outcomes are essentially the same

Cost is one of the sharpest distinguishing factors in the FXAIX vs VOO debate. FXAIX carries a 0.015% expense ratio, while VOO charges 0.03% — meaning FXAIX is literally half the cost. On a $100,000 portfolio, that saves roughly $15 per year, which compounds meaningfully over decades.

Cost breakdown:

  • FXAIX expense ratio: 0.015% (Fidelity mutual fund)
  • VOO expense ratio: 0.03% (Vanguard ETF)
  • Neither charges sales loads or redemption fees

Tax efficiency is where VOO holds a structural advantage over FXAIX. As an ETF, VOO uses an in-kind creation/redemption mechanism that minimizes capital gains distributions — making it better suited for taxable brokerage accounts. FXAIX, as a mutual fund, can occasionally distribute small capital gains, creating taxable events even if you didn't sell shares.

What this means for investors:

  • VOO is generally more tax-efficient in taxable accounts
  • In tax-advantaged accounts (IRA, 401k), this difference is irrelevant
  • FXAIX's lower expense ratio may offset the tax drag in many real-world scenarios

When comparing FXAIX vs VOO, how easily you can buy and trade each fund matters significantly. FXAIX is a Fidelity mutual fund available exclusively through Fidelity accounts, with no trading commissions and a $0 minimum investment. VOO, as a Vanguard ETF, trades on any brokerage platform throughout the day like a stock, giving investors broader access regardless of where their account is held.

Key differences:

  • FXAIX: Fidelity-only, priced once daily at market close
  • VOO: Available at Fidelity, Schwab, TD Ameritrade, and most brokerages
  • VOO trades intraday; FXAIX does not

5. Best for 2026

Choosing between these two S&P 500 index funds for 2026 comes down to your brokerage and investing style rather than performance differences. Both FXAIX and VOO track the same index with near-identical returns historically, so neither holds a structural advantage going forward. FXAIX carries a 0.015% expense ratio versus VOO's 0.03%, making Fidelity's fund marginally cheaper for long-term, buy-and-hold investors who already use Fidelity.

Bottom line:

  • Long-term Fidelity investors: FXAIX edges out on cost
  • Multi-brokerage or flexible traders: VOO offers portability
  • Both are strong picks — the difference is negligible over time

Final Words

Both FXAIX and VOO track the S&P 500 with razor-thin costs, making either a solid long-term choice. Whether you prioritize Fidelity's zero minimums, Vanguard's ETF flexibility, fractional shares, brokerage compatibility, or dividend reinvestment, the right pick comes down to your platform. Which fund fits your investing strategy best?

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Frequently Asked Questions About FXAIX vs VOO

What is the difference in expense ratio between FXAIX and VOO?

FXAIX has a lower expense ratio of 0.02% compared to VOO's 0.03%. While this difference is minimal, it gives FXAIX a slight cost advantage, particularly beneficial for long-term investors with large balances where even small fee differences can compound over time.

Which fund has better long-term performance, FXAIX or VOO?

Both funds deliver nearly identical long-term returns since they both track the S&P 500. One analysis shows FXAIX at a 13.83% annualized return versus VOO at 13.78%, but these differences are negligible and unlikely to meaningfully impact your portfolio outcomes over time.

Is FXAIX or VOO better for a long-term investor in 2026?

For most long-term investors, either fund is an excellent choice since both track the S&P 500 with minimal costs. FXAIX holds a slight edge in expense ratio at 0.02% versus VOO's 0.03%, but the decision often comes down to which brokerage platform you use, as FXAIX is a Fidelity mutual fund and VOO is a Vanguard ETF.

Can I buy FXAIX and VOO on any brokerage platform?

FXAIX is a Fidelity mutual fund, making it most accessible and cost-effective through Fidelity's platform. VOO is a Vanguard ETF that can be purchased on virtually any brokerage that supports ETF trading, giving it broader platform availability for investors not using Fidelity.

Do FXAIX and VOO track the same index?

Yes, both FXAIX and VOO track the S&P 500 index, meaning they hold the same approximately 500 large-cap U.S. stocks and aim to replicate the index's performance. This is why their long-term returns are nearly identical, with any differences driven primarily by their slightly different expense ratios and fund structures.

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