Introduction: Why fxaix?
If you’re looking for a simple, low cost way to invest in the stock market, you’ve probably come across fxaix. It’s one of Fidelity’ most popular index funds, designed to track the s&p 500, which means you get exposure to 500 of the biggest companies in the U.S.—including giants like Apple, Microsoft and Amazon.
But what makes fxaix stand out compared to other index funds? And is it a good fit for your portfolio? In this guide, we’ll break down everything you need to know about fxaix, from its performance to fees and how it compares to other funds.
What is fxaix?
fxaix or the Fidelity 500 Index Fund, is a passive investment fund that follows the s&p 500. When you invest in fxaix, you’re basically buying a small piece in one of the America largest companies in one simple fund.
Why does fxaix matter?
- Instant diversification – Instead of picking individual stocks, fxaix spreads your investment across 500 different companies.
- Long-term growth – Historically, the s&p 500 has delivered average annual returns of around 8-10% over the long run.
- Low fees – fxaix has an incredibly low expense ratio of just 0.015%, meaning you keep more of your money.
fxaix performance & historical returns
Let’s talk about the numbers.
fxaix closely mirrors the performance of the s&p 500, which has historically been one of the most reliable ways to grow wealth over time.
📈 Here’s how fxaix has performed over the past few years:
| Time period | Average annual return |
|---|---|
| 5 Years | ~15% |
| 10 Years | ~12% |
| 20 Years | ~9% |
Past performance doesn’t guarantee future results, but these numbers show why long-term investors love fxaix.
💡 Key takeaway: If you’re patient and let your money grow, fxaix can be a powerful wealth-building tool.
fxaix expense ratio & fees
One of fxaix’s biggest advantages? It’s dirt cheap.
- Expense ratio: 0.015% (That’s just 15 cents per $1,000 invested!)
- No minimum investment required – You can start with as little as $1.
- No load fees or trading fees if you buy through Fidelity.
Compare that to Vanguard’s vfiax (0.04%) or spy etf (0.09%), and you’ll see why fxaix is a favorite among cost-conscious investors.
💡 Key takeaway: Lower fees mean more money stays in your account, helping your investments grow faster.
fxaix holdings & asset allocation
Wondering what’s inside fxaix?
It holds the same 500 stocks as the s&p 500, including:
Sector breakdown:
- Technology (27%)
- Healthcare (14%)
- Financials (13%)
- Consumer Discretionary (11%)
Since fxaix is market-cap weighted, the biggest companies have the largest influence on performance.
💡 Key takeaway: fxaix gives you exposure to the biggest names in the stock market without having to buy them individually.
fxaix vs other s&p 500 funds
How does fxaix compare to other popular s&p 500 index funds?
| Fund | Expense ratio | Minimum investment | Availability |
|---|---|---|---|
| fxaix (Fidelity 500 Index Fund) | 0.015% | None | Fidelity Only |
| vfiax (Vanguard 500 Index Fund) | 0.04% | $3,000 | Vanguard |
| spy (s&p 500 ETF) | 0.09% | None | Any Brokerage |
Which one is best?
- If you use Fidelity → fxaix is your best choice (cheapest option).
- If you want a Vanguard fund → vfiax is great, but requires a $3,000 minimum.
- If you want an ETF → spy works well for trading, but has higher fees.
💡 Key takeaway: If you’re already using Fidelity, fxaix is a no-brainer for s&p 500 investing.
How to invest in fxaix
step 1: Open a Fidelity account
- If you don’t already have one, sign up on Fidelity website.
step 2: Fund your account
- Deposit money via bank transfer or rollover from another brokerage.
step 3: Buy fxaix
- Search for fxaix in your Fidelity account and hit Buy.
step 4: Choose your strategy
- Lump sum investment (invest all at once).
- Dollar-cost averaging (invest gradually over time).
💡 Key takeaway: fxaix is only available through Fidelity, so if you’re using a different brokerage, you might need to look at vfiax or spy instead.
Who should invest in fxaix?
✅ Best for:
✔️ Long-term investors.
✔️ Retirement accounts (401k, IRA).
✔️ Passive investors who want diversification with minimal effort.
❌ Not ideal for:
❌ Active traders (since fxaix is not an ETF)
❌ Investors who don’t use Fidelity
💡 Key takeaway: If you’re looking for an easy, low-cost, long-term investment, fxaix is one of the best options available.
Faqs about fxaix
Is fxaix a good investment for beginners?
Yes! It’s one of the best set-it-and-forget-it investments for beginners. Low fees + instant diversification = stress-free investing.
Does fxaix pay dividends?
Yes! fxaix pays quarterly dividends, which you can reinvest automatically or take as cash.
Can I buy fxaix if I don’t use Fidelity?
No, fxaix is only available through Fidelity. If you use another brokerage, vfiax (Vanguard) or spy (ETF) are good alternatives.
Final thoughts: Is fxaix worth it?
fxaix is one of the best low-cost index funds for long-term investors. With its low expense ratio, strong performance and exposure to the s&p 500, it’s a top choice for anyone looking to grow their money over time.
If you want a simple, effective way to invest in the stock market, fxaix is a fantastic option.
👉 Are you investing in fxaix? Let us know in the comments!
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