Published on: 2025-11-24
For S&P 500 exposure, FXAIX and VOO are as close as it gets to “same destination, different vehicle.” Both track the S&P 500, both are ultra-low cost, and both have almost identical long-term returns.
The real question is not which one will make you rich, but which structure fits your account, taxes, and trading style.
This breakdown looks at fees, structure, tax efficiency, recent performance, and technical metrics so you can see where Fidelity’s FXAIX (Fidelity 500 Index Fund) and Vanguard’s VOO (Vanguard S&P 500 ETF) actually differ.
This content is for information only and is not investment advice.
FXAIX and VOO are functionally very similar S&P 500 products. Over the last 10 years, both have delivered annualised returns around 14-15%, with only tiny differences between them.
FXAIX has a slight fee edge at 0.02% vs 0.03% for VOO, but VOO wins on tax efficiency and intraday tradability.
For most long-term investors, either fund can do the job. The decision usually comes down to:
What platform or account you use
Whether the money is in a taxable account or tax-advantaged account
Whether you want to trade intraday with limit/stop orders
| Category | FXAIX | VOO |
|---|---|---|
| Expense Ratio | 0.02% | 0.03% |
| Structure | Mutual fund; priced once daily at NAV | ETF; trades intraday on NYSE |
| 10-Year Annualised Return (to 24 Nov 2025) | ~14.38% | ~14.13% |
| YTD Performance (to 24 Nov 2025) | 13.87% | 13.52% |
| Tax Efficiency (Taxable Accounts) | Less tax-efficient; mutual funds may distribute more capital gains | More tax-efficient due to ETF structure and in-kind redemptions |
Taxable account, active or semi-active trader: VOO tends to be the cleaner fit.
Retirement account or Fidelity-centric investor who doesn’t care about intraday trading: FXAIX is perfectly fine and very slightly cheaper on headline fees.
| Feature | FXAIX – Fidelity 500 Index Fund | VOO – Vanguard S&P 500 ETF |
|---|---|---|
| Structure | Mutual fund | ETF |
| Benchmark | S&P 500 Index | S&P 500 Index |
| Expense Ratio (2025) | 0.02% | 0.03% |
| Inception | 4 May 2011 | 7 Sep 2010 |
| Total Assets (approx, 2025) | ≈ $723B | ≈ $760B+ (ETF share class) |
| Pricing | Once daily at NAV | Intraday, market price |
| 10-Year Annualised Return* | ~14.38% | ~14.13% |
| Max Drawdown | ~–33.8% | ~–34.0% |
| Top Holdings | NVDA, MSFT, AAPL, AMZN, META | NVDA, AAPL, MSFT, AMZN, AVGO |
Both funds are tied to the same engine: the S&P 500, which hit fresh record highs around October 2025 after a strong run supported by earnings growth and AI-driven tech strength.
Using combined data from fact sheets and comparison tools as of 24 November 2025:
FXAIX: about -2.67%
VOO: about -2.67%
Both have seen a modest pullback after a very strong six-month run. This fits the broader S&P 500 picture, which has cooled slightly after setting new highs.
FXAIX: roughly +14.48%
VOO: roughly +14.49%
Price action is almost identical, showing a strong medium-term uptrend with normal volatility. This is what you would expect from well-run index products that fully replicate the S&P 500.
FXAIX: ~14.38% annualised
VOO: ~14.13% annualised
That difference is marginal and mostly explained by tiny fee differences, trading/rounding, and slight timing effects on dividend reinvestment. Historically, performance gaps this small tend to wander back and forth over time rather than favour one fund forever.
FXAIX is a traditional mutual fund. Orders are executed once per day at the closing net asset value (NAV). There is no intraday trading or bid–ask spread to worry about. For investors who automate contributions in retirement plans, this “set and forget” behaviour is convenient.
Very low fee (0.02%) and low turnover (~3%) help keep tracking error tight.
Great fit for long-term buyers inside tax-advantaged accounts such as IRAs and 401(k)s, where mutual fund capital gains distributions don’t create immediate tax bills.
VOO is an ETF that trades all day on the NYSE, with tight bid–ask spreads and large daily volumes.
Slightly higher fee than FXAIX at 0.03%, but still among the cheapest S&P 500 options globally.
ETF structure uses in-kind redemptions, which helps minimise capital gains distributions. In taxable accounts, this often makes VOO more tax-efficient than a mutual fund tracking the same index, including FXAIX.
Inside retirement accounts, the tax edge is far less important. In taxable accounts, especially for larger balances, that tax difference can matter more than the 0.01% fee gap.
From a technical standpoint, FXAIX and VOO are effectively two tickers on the same trade: US large-cap equities via the S&P 500. Their trends, drawdowns, and volatility are nearly identical.
Over the last 3 years, both FXAIX and VOO show annualised returns around 19–20%, supported by strong earnings and a powerful AI-led tech rally.
6-month returns near +14.5% and a small one-month pullback suggest an ongoing uptrend with a standard consolidation, not a structural breakdown.
Risk-adjusted metrics such as the Sharpe ratio sit around 0.67–0.68, signalling solid long-term reward for the volatility taken.
PortfoliosLab data show very similar risk characteristics:
Daily volatility: around 18.7–18.9%
Max drawdown: roughly -34% for both, in line with the major bear legs of the past decade
Current drawdown: around -4% from recent highs, consistent with a moderate correction rather than a deep downturn
For traders, that profile says: expect full S&P 500 volatility. These funds are not low-volatility products. They move with the market, both up and down.
Because both track the S&P 500 very tightly, key reference points for support and resistance are:
Recent all-time highs in the S&P 500 around the 6,900 region (October 2025)
Recent minor swing lows, which sit only a few percent below current levels based on the ~4% drawdown in each fund
Treat pullbacks of 5–10% from highs as “normal corrections” inside an uptrend
Watch for deeper drops beyond previous swing lows as signals of a regime change
For most long-term investors, those moves are just noise. For short-term traders using CFDs or ETFs, they can define entry and exit timing.
There is no universal winner. The better choice depends on how and where you invest.
You mainly invest via Fidelity retirement accounts and are happy with end-of-day pricing
You want the absolute lowest stated fee and do not care about intraday orders
You rarely trade and simply add to the position on a schedule
You want to trade intraday, use limit / stop orders, or scale in and out more actively
You hold a large position in a taxable account, where ETF tax efficiency can reduce capital gains distributions over time
You may use options or hedging strategies that require an ETF as the underlying
From a pure S&P 500 exposure point of view, both funds are excellent. Any future performance gap is likely to be small and driven more by market conditions than by the product itself.
You can’t buy FXAIX or VOO directly through EBC Financial Group, but you can trade the same S&P 500 exposure via index and ETF-linked CFDs.
With EBC Financial Group, traders can:
Trade S&P 500 index CFDs alongside major FX pairs, commodities and other indices
Use advanced charting tools to follow swings, pullbacks and key levels on the S&P 500 and related ETFs
Apply stop-loss and take-profit orders to manage risk around index moves
Combine macro views (rates, earnings, tech cycle) with intraday technical setups
Risk warning: Trading leveraged products involves a high level of risk and may not be suitable for all investors. You can lose more than your initial investment. Always consider your objectives and risk tolerance, and seek independent advice if needed.
Both track the S&P 500 closely with near-identical long-term returns. FXAIX is very slightly cheaper on fees, while VOO is generally more tax-efficient and trades intraday. The better choice depends on your account type and trading style.
Each fund holds essentially the same S&P 500 names in very similar weights, and both use low-cost, passive strategies. Small performance gaps come from fee differences, timing, dividend handling and trading frictions, but they’ve stayed tiny over long periods.
VOO usually has the edge in taxable accounts because its ETF structure uses in-kind creations and redemptions, helping to minimise capital gains distributions versus mutual funds like FXAIX. Inside retirement accounts, this difference is much less important.
No. Both carry similar volatility (around 19% annualised), similar drawdowns (around -34% at worst over the past decade) and similar risk-adjusted metrics like the Sharpe ratio. You are essentially taking S&P 500 risk either way.
Yes. While you don’t trade FXAIX or VOO directly, EBC Financial Group offers S&P 500 exposure via index and ETF-linked CFDs, alongside forex, commodities and other indices. Remember that CFDs are leveraged products and carry a high risk of loss.
FXAIX and VOO both do what investors want from an S&P 500 product: broad, cheap, liquid access to US large-caps. Fees are razor-thin, tracking has been very tight, and long-run returns have been almost indistinguishable.
The real differences come down to how you trade, how you’re taxed, and which platform you use. FXAIX has a slightly lower fee and a mutual-fund structure, making it ideal for hands-off retirement savings.
VOO, on the other hand, is an ETF with strong tax advantages in taxable accounts and offers intraday trading flexibility for more active investors.
If you are looking to trade the S&P 500 tactically, using leverage, short-term setups or hedges, doing so through a regulated broker such as EBC Financial Group that gives you access to S&P 500 index CFDs and related products while keeping your choice of FXAIX vs VOO in longer-term investment accounts separate from your trading book.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
