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This fund's primary goal is to mirror the overall investment performance of common stocks listed on public exchanges in the United States. It typically commits a minimum of 80% of its capital to the equities that comprise the S&P 500® Index, which serves as a broad benchmark for the U.S. stock market. Furthermore, the fund generates extra revenue through securities lending.
Is FXAIX's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
Every conversation about the cheapest way to own the S&P 500 lands on the same few tickers from the major ETF sponsors.
If you want the simplest, cheapest way to own the U.S. stock market inside a Fidelity account, the Fidelity 500 Index Fund (NASDAQ:FXAIX) is the default answer.
Key Points It’s important to maintain a diverse investment portfolio. Investing in the S&P 500 index is a good way to do that. If you’re not sure which S&P 500 fund to buy, you may want to favor the lowest expense ratio. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor) Investing your money is a great way to make it work for you. But there are certain basic rules of investing it pays to follow. First, you should never invest money you expect to need a few years down the line. People who use the stock market to make a quick buck tend to be unsuccessful and often lose money rather than gain it. To succeed as an investor, plan to hold onto your assets for many years so their value can appreciate over time. Secondly, understand what you’re buying. If you don’t understand how crypto works, for example, steer clear of it. Finally, make sure to maintain a diversified portfolio. This can help your money grow, all the while protecting you during market downturns or periods of volatility. One easy way to diversify within your portfolio is to load up on S&P 500 ETFs. And this Reddit poster wants to know which one is best. What is an S&P 500 ETF? ETFs, or exchange-traded funds, are funds that trade publicly and hold a collection of assets. S&P 500 ETFs are ETFs that aim to match the performance of the S&P 500 index, which consists of the 500 largest publicly traded companies by market capitalization. There are a couple of benefits to investing in the S&P 500. First, you’re getting instant diversification, since you’re effectively putting your money into 500 different businesses. Also, you’re investing in established companies, which might give you some peace of mind. Which S&P 500 ETF should you choose? In the post above, the question is which S&P 500 ETF to invest in. The choices that are being asked about are: IVV – the iShares Core S&P 500 ETF VOO – the Vanguard S&P 500 ETF SPY – the SPDR S&P 500 ETF Trust FXAIX – the Fidelity 500 Index The reality is that you’re probably looking at similar returns out of all of these, because they all do the same thing — track and try to match the performance of the S&P 500. So what you may want to do to make a decision is look at the fees involved. VOO, for example, has an expense ratio of 0.03%, as does IVV. SPY’s expense ratio is 0.09%, while FXAIX is 0.02%. However, it’s worth noting that FXAIX is an index fund, not an ETF. ETFs and index funds are similar but trade a little differently and are priced a little differently. If you’d rather stick with an ETF, you may want to turn to VOO or IVV. Don’t let SPY’s expense ratio turn you off, though. It, too, is very low. You can invest in multiple S&P 500 ETFs Ultimately, there’s not a huge difference between the investment choices above. And you also don’t have to choose one over the other. If you’d rather own a few different funds, so be it. The key is to hold an S&P 500 ETF in your portfolio for a good number of years so you can grow your money over time.The post IVV, VOO, SPY, FXAIX – how do I pick one, and does it really matter? appeared first on 24/7 Wall St..
Most of us would love to retire as millionaires -- and many of us who are aiming for a certain degree of comfort in retirement will need to retire as millionaires. After all, money tends to be worth less in the future, due to inflation. If you're retiring in, say, 30 years, with a million dollars, it may only have the purchasing power of $500,000 today. So how should you invest to get to that million dollars (or more)? Well, it's hard to beat the stock market, of course, but you don't have to become a fancy stock analyst able to spot stocks that will be exploding in value shortly. You can reach millionairehood with a simple index fund that tracks the S&P 500. What's the S&P 500? The Standard & Poor's 500 is a stock market index containing 500 of America's biggest and best companies. There are thousands of stocks out there, but these 500 are so big that together they make up about 80% of the overall stock market's total value. The index is market-capitalization-weighted, meaning that the biggest companies in it will count much more than the smallest companies. Here are the recent top 10 companies in the S&P 500: Source: Slickcharts.com. How to become a millionaire The stock market has grown by an annual average of close to 10% over very long periods, but it might average a higher or lower growth rate over the period in which you invest. So check out the table below, which shows how you might amass a million dollars or more simply investing in something that grows at a somewhat more conservative rate -- 8% -- annually: Source: Calculations by author. Clearly, great wealth creation is possible, but you do need a few things: Meaningful sums invested regularly Ample time An effective growth rate, such as that from the S&P 500 Investing in the S&P 500 How can you invest in the S&P 500 then? Well, via a simple, low-fee index fund. Various index funds track various indexes, and many of them track the S&P 500 index. Here are a few: Vanguard S&P 500 ETF (VOO 0.83%) iShares Core S&P 500 ETF (IVV 0.85%) SPDR S&P 500 ETF Trust (SPY 0.85%) Vanguard 500 Index Admiral Fund (NASDAQMUTFUND: VFIAX) Fidelity 500 Index Fund (NASDAQMUTFUND: FXAIX) Schwab S&P 500 Index Fund (NASDAQMUTFUND: SWPPX) There's a good chance one of these is available in your workplace's 401(k) plan, but you can also invest in them via a regular brokerage account or perhaps via the mutual fund company itself. So don't ignore the S&P 500, because it has the power to make you much wealthier -- and fairly easily, too! Something big just happened When our analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best buys for investors right now… And while timing isn't everything, the history of their stock picks shows that it pays to get in early on their best ideas. See the 10 stocks *Stock Advisor returns as of November 7, 2022 *Average returns of all recommendations since inception. Cost basis and return based on previous market day close.