FXAIX – Fidelity 500 Index Fund Tracking the Performance of the S&P 500 for Long-Term Wealth Growth
Apr 20, 2026
What Is FXAIX?
FXAIX (Fidelity 500 Index Fund) is a mutual fund that tracks the S&P 500 Index, meaning it invests in the 500 largest U.S. companies.
It is one of the most popular low-cost index funds offered by Fidelity and is often used for long-term investing and retirement portfolios. (fidelity.com)
What You Own in FXAIX
When you invest in FXAIX, you are indirectly owning shares in major companies such as:
Apple
Microsoft
Amazon
NVIDIA
Alphabet (Google)
Meta
It gives exposure to the biggest and most established U.S. corporations.
Key Features of FXAIX
| Feature | Details |
|---|---|
| Type | Mutual fund |
| Index tracked | S&P 500 |
| Holdings | ~500 large U.S. companies |
| Expense ratio | Very low (~0.015%) |
| Minimum investment | $0 (very accessible) |
| Strategy | Passive index investing |
| Risk level | Medium–high |
FXAIX vs VFIAX
| Feature | FXAIX | VFIAX |
|---|---|---|
| Provider | Fidelity | Vanguard |
| Index | S&P 500 | S&P 500 |
| Expense ratio | Lower (~0.015%) | Slightly higher (~0.04%) |
| Minimum investment | $0 | ~$3,000 |
| Performance | Nearly identical | Nearly identical |
👉 Both funds track the same index, so performance is almost the same.
Why People Like FXAIX
1. Extremely Low Fees
One of the cheapest ways to invest in the S&P 500.
2. Simple Investing
You get exposure to 500 top U.S. companies in one fund.
3. Strong Long-Term Track Record
The S&P 500 has historically grown over long periods (not guaranteed).
4. No Minimum Investment
Great for beginners.
Risks of FXAIX
Even though it is diversified, it still has risks:
Depends entirely on U.S. large companies
Can fall sharply during market crashes
No international exposure
Returns are not guaranteed
FXAIX in Simple Terms
If the U.S. economy grows → FXAIX grows
If the market crashes → FXAIX falls
It moves with the biggest companies in the United States.
FXAIX vs VTSAX
| Feature | FXAIX | VTSAX |
|---|---|---|
| Coverage | Top 500 companies | Entire U.S. market |
| Diversification | Medium | Higher |
| Small/mid caps | No | Yes |
| Complexity | Very simple | Slightly broader |
Final Thoughts
FXAIX is a low-cost, simple way to invest in America’s top 500 companies.
It is popular because it offers:
Extremely low fees
Easy access for beginners
Strong diversification within large-cap stocks
Long-term growth potential
