FXAIX is the Fidelity 500 Index Fund — a mutual fund that tracks the S&P 500 Index at a 0.015% expense ratio. It is one of the cheapest S&P 500 index funds available and is only accessible at Fidelity. Unlike VOO and IVV, which are ETFs, FXAIX is a traditional mutual fund that can be purchased in exact dollar amounts.

Is FXAIX better than VOO?

FXAIX charges 0.015% vs. VOO's 0.03% — half the cost for the same S&P 500 exposure. However, FXAIX is only available at Fidelity, while VOO is an ETF available at any brokerage. For Fidelity investors who plan to stay at Fidelity, FXAIX has a slight cost advantage. For investors who want portability, VOO or IVV are better choices.

What is the minimum investment for FXAIX?

FXAIX has no minimum investment requirement. You can invest as little as $1. This makes it accessible for all investors, including those starting out with small contributions.

Does FXAIX pay dividends?

Yes. FXAIX passes through dividends from the S&P 500's 500 underlying companies on a quarterly basis. The yield is approximately 1.2%–1.6%. Dividends automatically reinvest in additional fractional shares at Fidelity.

FXAIX Fund 2026 Review — Fidelity 500 Index Fund Guide

FXAIX (Fidelity 500 Index Fund) is the lowest-cost way to invest in the S&P 500 available at Fidelity. Its 0.015% expense ratio is half the cost of VOO (0.03%) and IVV (0.03%) — making it one of the cheapest S&P 500 funds on the market. It has no minimum investment, no transaction fees, and is available in exact dollar amounts.

FXAIX at a Glance

Metric	Detail
Ticker	FXAIX
Fund type	Mutual fund (not ETF)
Manager	Fidelity
Expense ratio	0.015%
Index tracked	S&P 500
Minimum investment	$0
Dividend frequency	Quarterly
AUM	$600B+
Availability	Fidelity only

What Does FXAIX Track?

FXAIX tracks the S&P 500 Index — maintained by S&P Global. The S&P 500 represents the 500 largest US publicly traded companies by market capitalisation, covering approximately 80% of the total US stock market’s value.

Top FXAIX holdings (same as S&P 500 top weights):

Apple (~7%)
Microsoft (~6–7%)
Nvidia (~5–6%)
Amazon (~3–4%)
Alphabet (~3–4%)
Meta Platforms (~2–3%)
Berkshire Hathaway (~2%)
Broadcom (~2%)
Tesla (~1–2%)
JPMorgan Chase (~1–2%)

The fund includes all 11 GICS sectors, with technology the dominant weight (~28–32%).

FXAIX vs. VOO vs. IVV: Full Comparison

Feature	FXAIX	VOO	IVV
Manager	Fidelity	Vanguard	BlackRock
Expense ratio	0.015%	0.03%	0.03%
Fund type	Mutual fund	ETF	ETF
Minimum investment	$0	1 share price (~$500–600)	1 share price (~$600–700)
Purchase in dollar amounts	Yes	No (buy whole/fractional shares)	No (buy whole/fractional shares)
Available at	Fidelity only	All brokerages	All brokerages
Portability	Low	High	High
Dividend handling	Quarterly distribution	Quarterly distribution	Quarterly distribution

Cost advantage: On $300,000 invested for 30 years:

FXAIX (0.015%): annual fee ~$45
VOO (0.03%): annual fee ~$90
Difference over 30 years: ~$1,500–$3,000

Meaningful, but small compared to contribution amounts. The portability trade-off matters more than the cost for many investors.

FXAIX vs. FNILX (Fidelity ZERO Large Cap)

Fund	Expense ratio	Index	Portability
FXAIX	0.015%	S&P 500	Fidelity only
FNILX	0.00%	Fidelity Large Cap Index	Fidelity only

FNILX tracks a Fidelity proprietary large-cap index that closely mirrors the S&P 500, but it is not officially the S&P 500 (Fidelity pays licensing fees to use the S&P 500 name, which is included in FXAIX’s 0.015%). FNILX avoids the licensing fee by using its own proprietary index.

In practice, FXAIX and FNILX have nearly identical performance. The 0.015% cost difference between them is trivial — less than $20/year on $100,000. Choose FNILX for absolute minimum cost; choose FXAIX if you specifically want the official S&P 500 index.

FXAIX Performance

FXAIX performance mirrors the S&P 500:

Period	Approximate return
5-year (2021–2025)	~14–16%/yr
10-year (2016–2025)	~12–14%/yr
20-year (2006–2025)	~10–12%/yr

FXAIX should underperform VOO/IVV by approximately 0.015%/year (its expense ratio advantage). In practice, the difference is negligible.

FXAIX in a Fidelity Portfolio

Simple three-fund Fidelity portfolio:

Fund	Strategy	Expense ratio
FXAIX	US large-cap (S&P 500)	0.015%
FSKAX	Fidelity Total Market	0.015%
FTIHX	Fidelity Total International	0.06%

Or using ZERO funds:

Fund	Strategy	Expense ratio
FZROX	US Total Market	0.00%
FZILX	International	0.00%
FXNAX	US Bond Market	0.025%

How to Invest in FXAIX at Fidelity

Log in to your Fidelity account (brokerage, Roth IRA, traditional IRA)
Search “FXAIX” in the fund search
Enter the dollar amount you want to invest (e.g., $1,000)
No minimum, no commission, no transaction fee
Set up automatic monthly investments (e.g., $500/month from your linked bank)

FXAIX accepts exact dollar amounts — unlike ETFs, which require buying whole or fractional shares. This makes it convenient for dollar-cost averaging with round numbers.

Worked Example: $500/Month in FXAIX Over 20 Years

Assuming 10% annualised gross return (approximate S&P 500 long-run average):

Years	Contributions	Estimated value
5	$30,000	~$39,000
10	$60,000	~$102,000
15	$90,000	~$211,000
20	$120,000	~$382,000

Annual FXAIX fee at year 20 on $382,000 balance: approximately $57. The 0.015% expense ratio is genuinely negligible at this level.

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Bottom Line

FXAIX is one of the best S&P 500 funds available — 0.015%, no minimum, available in exact dollar amounts, commission-free at Fidelity. For Fidelity investors, it is the optimal S&P 500 choice unless you prefer the ZERO-cost FNILX. The only drawback is portability: like all Fidelity mutual funds, FXAIX cannot transfer in-kind to another broker. For long-term Fidelity investors, this is rarely a concern.

This article is for educational purposes only and does not constitute personalised investment advice.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy