Why is it good to invest in FXAIX?
With a 0.015% expense ratio, it's the cheapest on our list. And it doesn't have a minimum initial investment requirement, sales loads or trading fees. Over the last 10 years, FXAIX has returned an annualized 12.02%. The S&P 500 index's return is 11.8% during that period.
FXAIX is the mutual fund ticker symbol for the Fidelity 500 Index Fund. The fund earns a five-star Gold rating from Morningstar and ranks above average compared to most industry peers. With a low 0.015% expense ratio, FXAIX is one of the cheapest ways to hold the 500 stocks in the S&P 500 index.
Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky. S&P 500 index funds or ETFs will track the performance of the S&P 500, which means when the S&P 500 does well, your investment will, too. (The opposite is also true, of course.)
| Fund (ticker) | 5-year annual returns | Expense ratio |
|---|---|---|
| Vanguard S&P 500 ETF (VOO) | 14.5% | 0.03% |
| SPDR S&P 500 ETF Trust (SPY) | 14.5% | 0.095% |
| iShares Core S&P 500 ETF (IVV) | 14.5% | 0.03% |
| Schwab S&P 500 Index (SWPPX) | 14.5% | 0.02% |
FXAIX Fund Profile
The fund invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. It invests in growth and value stocks of large-cap companies.
Fidelity 500 Index (FXAIX): Best large-cap 401(k) investment. Vanguard Mid-Cap Index Institutional (VMCIX): Best mid-cap 401(k) investment. Vanguard S&P Small-Cap 600 Index (VSMSX): Best small-cap 401(k) Investment.
FXAIX pays dividends quarterly. Last paid amount was $0.702 at Dec 15, 2023.
According to our calculations, a $1000 investment made in February 2014 would be worth $5,971.20, or a gain of 497.12%, as of February 5, 2024, and this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 178.17% and gold's return of 55.50% over the same time frame.
Meanwhile, if you only invest in S&P 500 ETFs, you won't beat the broad market. Rather, you can expect your portfolio's performance to be in line with that of the broad market. But that's not necessarily a bad thing. See, over the past 50 years, the S&P 500 has delivered an average annual 10% return.
Is Investing in the S&P 500 Less Risky Than Buying a Single Stock? Generally, yes. The S&P 500 is considered well-diversified by sector, which means it includes stocks in all major areas, including technology and consumer discretionaryâmeaning declines in some sectors may be offset by gains in other sectors.
Should I buy Spy or FXAIX?
The year-to-date returns for both investments are quite close, with SPY having a 6.71% return and FXAIX slightly higher at 6.76%. Both investments have delivered pretty close results over the past 10 years, with SPY having a 12.53% annualized return and FXAIX not far ahead at 12.69%.
Average Price Target
Based on 506 Wall Street analysts offering 12 month price targets to Fidelity 500 Index Fund holdings in the last 3 months. The average price target is $199.98 with a high forecast of $235.34 and a low forecast of $162.98.
Overall Rating. Morningstar has awarded this fund 5 stars based on its risk-adjusted performance compared to the 1293 funds within its Morningstar Category.
| Technology | 34.34% |
|---|---|
| Health Care | 11.49% |
| Industrials | 10.34% |
| Consumer Goods | 7.00% |
| Oil & Gas | 3.87% |
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.
In terms of fees, FXAIX is a no load fund. It has an expense ratio of 0.02% compared to the category average of 0.92%.
The fund is passively managed, so performance could be lower than an actively managed fund. Performance of the fund also may vary from performance of the index fund it tracks. This can be attributed to transaction costs and additional fees and expenses related to the fund, among other factors.
Why it made our list. The Fidelity 500 Index Fund remains one of the most popular S&P 500 index funds in the U.S. â and for good reason. Its low expense ratio makes it an extraordinary value. FXAIX is also accessible to investors of all account sizes.
Fidelity® 500 Index Fund has an expense ratio of 0.02 percent.
- MSFT. Microsoft Corporation 7.16%
- AAPL. Apple Inc. 6.15%
- NVDA. NVIDIA Corporation 4.55%
- AMZN. Amazon.com, Inc. 3.74%
- META. Meta Platforms, Inc. 2.53%
- GOOGL. Alphabet Inc. 1.91%
- BRK-B. Berkshire Hathaway Inc. 1.73%
- GOOG. Alphabet Inc. 1.62%
Is FXAIX a mutual fund or ETF?
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 $0.55 per share. FXAIX's annual dividend yield is 1.76%. When is Fidelity 500 Index Fund ex-dividend date? Fidelity 500 Index Fund's previous ex-dividend date was on Apr 05, 2024.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 6% | $1,000 | $3,207.14 |
| 7% | $1,000 | $3,869.68 |
| 8% | $1,000 | $4,660.96 |
| 9% | $1,000 | $5,604.41 |
The result is the number of years, approximately, it'll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
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