Fund face-off

VOO vs FXAIX: which is better for you?

Updated October 8, 2026 · 4 min read · By the Compound Wealth Calc team

VOO and FXAIX both follow the S&P 500. One is an ETF from Vanguard and the other is a mutual fund from Fidelity.

The short answer

They're nearly identical. FXAIX has the lowest fee and is easy if you use Fidelity. VOO is an ETF you can buy at almost any broker.

VOO vs FXAIX at a glance

	VOO	FXAIX
Made by	Vanguard	Fidelity
Type	ETF	mutual fund
Follows	S&P 500	S&P 500
What it owns	about 500 large U.S. companies	about 500 large U.S. companies
Yearly fee	0.03%	0.015%
Dividend yield (approx.)	1.3%	1.2%
10-year yearly return (approx.)	13.5%	13.5%
Typical swings	Medium	Medium

Returns and yields are rounded estimates through mid-2026. Fees are each fund's yearly expense ratio.

What is VOO?

VOO follows the S&P 500, a list of about 500 of the biggest U.S. companies across every industry. It's one of the cheapest and most popular ways to own the U.S. stock market.

What is FXAIX?

FXAIX is Fidelity's S&P 500 mutual fund. It has no minimum to invest at Fidelity and one of the lowest fees of any fund. Mutual funds trade once a day, after the market closes.

Growth: $200 every paycheck

Here's what $200 every two weeks could grow to at each fund's approximate 10-year yearly return:

After	VOO	FXAIX
10 years	$104,367	$104,367
20 years	$474,641	$474,641
30 years	$1,788,296	$1,788,296

Because they follow the same index, their returns are almost identical. Small gaps come from fees and rounding.

Fees

Yearly fee	VOO	FXAIX
Per $10,000 invested	$3	$2
On the 30-year balance	$536	$268

Lower fees leave more money growing for you. See why small fees add up.

Dividends

	VOO	FXAIX
Dividends a year on the 30-year balance	$23,248	$21,460

Risk

VOO's typical swings are medium, and FXAIX's are medium. Funds that hold fewer kinds of companies tend to rise and fall more. The best fund is one you can hold through a bad year without selling.

Which one fits you?

Pick VOO if you want an ETF you can buy at any broker and trade during the day.
Pick FXAIX if your account is at Fidelity and you want to invest exact dollar amounts automatically.

Put VOO and FXAIX side by side with your own paycheck amount.

Compare them

Quick answers

Is VOO better than FXAIX?

They're nearly identical. FXAIX has the lowest fee and is easy if you use Fidelity. VOO is an ETF you can buy at almost any broker.

Which has lower fees, VOO or FXAIX?

VOO charges 0.03% a year and FXAIX charges 0.015%. FXAIX is cheaper.

Which pays more dividends, VOO or FXAIX?

VOO has paid about 1.3% a year and FXAIX about 1.2%. Yields change over time.

Can I buy FXAIX outside of Fidelity?

Sometimes, but other brokers may charge a fee. It's simplest to buy FXAIX at Fidelity.

Keep learning

This article is for learning only. It is not financial, tax or legal advice. Example returns are not promises. Talk to a licensed professional about your own situation.