[USER]

Hey everyone, Trying to educate myself so I can buy the dip. I think I should buy an SP500 index fund? I have a Fidelity account and am trying to understand the differences between FXAIX and VOO.

I’m not sure what to invest in and would like to hear everyone’s perspective.

Thanks!

[Shaun]

I bought FZROX because it seemed to have the lowest fees.

[Shawn]

Any s&p 500 fund is going to be the same. Buy the one with the lowest expense ratio. ETFs can be traded intraday, if that’s important to you.

I like Vanguard because they pay dividends quarterly, I’m not sure what fidelity does.

The other cool thing about ETFs and Vanguard mutual funds is that they use a patented process to sign the capital gains out through the ETFs.

This means you won’t get capital gains distributions you have to pay taxes on. Mostly I’m a fan of Vanguard.

But it’s really like choosing a shade of white paint, most days you can’t see any difference.

Don’t waste too much brain power on this.

[Chue]

They are exactly the same thing. VOO is Vanguard’s S&P 500 and FXAIX is Fidelity’s S&P 500. The only slight I notice is that VOO is a ETF and FXAIX is a mutual fund.

ETF’s can be traded during the day but Mutual funds can only be traded at the end of the day.

Good luck!

[David]

The way I understand the difference is mutual funds cause tax events and etfs like voo do not

[Janice]

Welcome. You’re definitely thinking smart with the S&P 500. FXAIX and VOO are nearly identical in performance since they both track the same index.

FXAIX is Fidelity’s version (no fees if you’re already with them), while VOO is a Vanguard ETF, which might have a tiny fee and can trade like a stock.

If you’re staying within Fidelity, FXAIX is the easy win low-cost and automatic reinvestment is smooth Roger & Beth’s

[Author]

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