Is FXAIX a mutual fund or ETF?
FXAIX is a mutual fund.
How are ETFs and mutual funds different? How are they managed? While they can be actively or passively managed by fund managers, most ETFs are passive investments pegged to the performance of a particular index. Mutual funds come in both active and indexed varieties, but most are actively managed.
The VOO Fidelity mutual fund equivalent is FXAIX, the Fidelity ® 500 Index Fund. Fidelity does not have a VOO or FXAIX ETF equivalent. The State Street SPDR ETF equivalent for both funds is the SPDR S&P 500 ETF Trust (SPY).
Overall Rating
Morningstar has awarded this fund 5 stars based on its risk-adjusted performance compared to the 1298 funds within its Morningstar Category.
Fidelity® 500 Index Fund is a diversified domestic large-cap equity strategy that seeks to closely track the returns and characteristics of the S&P 500® index. The S&P 500® is a market-capitalization-weighted index designed to measure the performance of 500 large-cap U.S. companies.
S&P 500 funds, whether index funds or ETFs, both track the S&P 500. The biggest difference between them is that exchange-traded funds (ETFs) can be traded throughout the day like stocks, while index funds can only be bought and sold at the price set at the end of the trading day.
Investment companies can be structured as either open-end or closed-end funds—although most investment companies are open-end funds, known more commonly as mutual funds. One of the key distinguishing features of a mutual fund is that investors can buy and sell shares at any time.
Lowest Cost S&P 500 Index Fund: Fidelity 500 Index Fund (FXAIX) FXAIX is a mutual fund. Because index-tracking funds will follow the performance of the index, one of, if not the, biggest determinant of long-term returns is how much it charges in fees.
FXAIX pays a dividend of $0.63 per share. FXAIX's annual dividend yield is 1.38%.
While VOO and FXAIX track the same index, the key difference is their structure. FXAIX is a mutual fund, which means it doesn't trade throughout the day like an ETF. Instead, investors purchase shares of FXAIX at the end of each trading day. On the other hand, VOO trades throughout the day.
Does FXAIX automatically reinvest dividends?
If FXAIX offers a Dividend Reinvestment Plan (DRIP), shareholders may have the option to automatically reinvest dividends to purchase additional shares. Please check with your brokerage for the availability and details of such a plan. Here's an easy guide on how to buy FXAIX stock.
This fund is closed to new investors.
ETFs have lower expense ratios. Mutual funds have higher management fees. ETFs are passively managed, mirroring a particular index, making them less risky and transparent. Mutual funds are actively managed, with fund managers investing based on analysis and market outlook.
In many ways mutual funds and ETFs do the same thing, so the better long-term choice depends a lot on what the fund is actually invested in (the types of stocks and bonds, for example). For instance, mutual funds and ETFs based on the S&P 500 index are largely going to perform the same for you.
The majority of mutual funds can be classified into four primary categories: Bond funds, Money Market funds, Target date funds, and Stock funds. Each category possesses distinct characteristics, risks, and potential returns. Below is a comprehensive enumeration of mutual fund types.
The largest Fidelity ETF is the Fidelity Wise Origin Bitcoin Fund FBTC with $11.16B in assets. In the last trailing year, the best-performing Fidelity ETF was FMAG at 25.63%. The most recent ETF launched in the Fidelity space was the Fidelity Ethereum Fund FETH on 07/23/24.
Another option is a low-cost S&P 500 mutual fund or ETF, both of which mirror the index and typically carry less risk than investing in individual stocks. An S&P 500 fund or ETF tries to replicate the performance of the index by investing in listed companies and working to match the index's performance.
Overall Rating
Morningstar has awarded this fund 5 stars based on its risk-adjusted performance compared to the 1302 funds within its Morningstar Category.
It invests in common stocks included in the S&P 500 Index, a widely recognized, unmanaged index of common stock prices, and broadly represents the performance of common stocks.
SPDR S&P 500 ETF (SPY) and Fidelity 500 Index Fund (FXAIX) have volatilities of 5.57% and 5.66%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same.
Is FXAIX a diversified mutual fund?
About FXAIX
The index covers about 80% of the investable market capitalization of the U.S. equity market. The S&P 500 has been widely touted by many experts as a good addition to retirement portfolios because it is broadly diversified across all sectors.
FXAIX - Performance Comparison. The year-to-date returns for both investments are quite close, with VOO having a 9.85% return and FXAIX slightly higher at 9.88%. Both investments have delivered pretty close results over the past 10 years, with VOO having a 12.46% annualized return and FXAIX not far ahead at 12.54%.
Distributions you receive from the fund are subject to federal income tax and generally will be taxed as ordinary income or capital gains, and may also be subject to state or local taxes, unless you are investing through a tax-advantaged retirement account (in which case you may be taxed later, upon withdrawal of your ...
VOO - Volatility Comparison. The current volatility for Fidelity 500 Index Fund (FXAIX) is 4.72%, while Vanguard S&P 500 ETF (VOO) has a volatility of 5.46%.
VOO | S&P 500 ETF.
