FBGRX vs VIGAX (2026): Fidelity Blue Chip Growth vs Vanguard Growth Index — Which Should You Choose?
Fidelity Blue Chip Growth (FBGRX) and Vanguard Growth Index Admiral (VIGAX) are both large-cap growth funds — but one is actively managed and one tracks the index. What's unusual here is that FBGRX has beaten VIGAX across every major time period, including 21.20% vs 17.69% over 10 years. The question is whether that outperformance justifies a 0.75% annual fee premium.
Bottom Line Up Front
- 🏆 FBGRX wins on raw returns — 21.20% vs 17.69% annualized over 10 years. That's a 3.51% annualized edge, which is exceptional for an actively managed fund after factoring in fees.
- 💸 VIGAX wins on cost — 0.05% expense ratio vs FBGRX's ~0.80%. That 0.75% annual gap means VIGAX investors keep substantially more of their returns at index-matching performance.
- 📊 Both concentrate in large-cap growth — Apple, Nvidia, Microsoft, Amazon, Alphabet dominate both funds. FBGRX adds active bets on top; VIGAX owns the full segment passively.
- 📈 FBGRX has higher volatility — std dev 20.13 vs VIGAX's 17.72. Active concentration means bigger swings in both directions.
- ✅ VIGAX is tax-efficient in taxable accounts — low turnover, minimal capital gains distributions. FBGRX's active trading generates taxable events that reduce after-tax returns.
FBGRX vs VIGAX: Side-by-Side Comparison
| Metric | FBGRX (Blue Chip Growth) | VIGAX (Growth Index Admiral) |
|---|---|---|
| Fund Name | Fidelity Blue Chip Growth Fund | Vanguard Growth Index Fund Admiral Shares |
| Fund Family | Fidelity | Vanguard |
| Category | Large Growth | Large Growth |
| Management Style | Actively Managed | Passive Index |
| Expense Ratio | ~0.80% | 0.05% |
| 1-Year Return | 22.32% | 12.90% |
| 3-Year Return | 28.85% | 23.30% |
| 5-Year Return | 13.91% | 12.41% |
| 10-Year Return | 21.20% | 17.69% |
| Volatility (Std Dev) | 20.13 | 17.72 |
| Distribution Yield | ~0.0% | 0.37% |
| Total Assets | ~$105B | ~$392B |
| Morningstar Rating | ★★★★ | ★★★★ |
| Minimum Investment | $2,500 | $3,000 |
Returns are annualized. Data as of October 2026.
Active vs. Passive: A Rare Case Where Active Wins
FBGRX and VIGAX are unusual among large-cap growth comparisons because both funds target the same universe — blue-chip, large-cap growth companies. VIGAX does it passively; FBGRX does it with active conviction. Conventional wisdom says passive wins. Here, the data tells a more complicated story.
FBGRX (Blue Chip Growth)
Active stock selection within blue chips. FBGRX concentrates in S&P 500 and Dow Jones companies — or companies with $1B+ market caps — where managers believe above-average growth exists. It doesn't swing for micro-caps or speculative names; it runs conviction within the established large-cap growth universe.
- ✅ Has beaten VIGAX on 1-, 3-, 5-, and 10-year returns
- ✅ 10-year return of 21.20% — top-tier performance in its category
- ✅ $2,500 minimum (lower than VIGAX's $3,000)
- ❌ ~0.80% expense ratio — 16x more expensive than VIGAX
- ❌ Higher volatility (std dev 20.13 vs 17.72) — bigger drawdowns
- ❌ Capital gains distributions — tax-inefficient in taxable accounts
VIGAX (Growth Index Admiral)
Passive ownership of large-cap growth. VIGAX tracks the CRSP US Large Cap Growth Index, owning every qualifying growth stock at market-cap weight. No active bets, no stock-picking — just systematic exposure to the large-cap growth segment of the U.S. market at near-zero cost.
- ✅ 0.05% expense ratio — essentially free
- ✅ Owns the full large-cap growth segment (>250 stocks)
- ✅ Tax-efficient — minimal capital gains distributions
- ✅ No manager risk — tracks the benchmark mechanically
- ❌ Can never beat its benchmark — only match it
- ❌ $3,000 minimum investment required
Performance Deep Dive: Does the Active Premium Hold Up?
| Period | FBGRX Return | VIGAX Return | Difference |
|---|---|---|---|
| 1 Year | 22.32% | 12.90% | FBGRX +9.42% |
| 3 Year | 28.85% | 23.30% | FBGRX +5.55% |
| 5 Year | 13.91% | 12.41% | FBGRX +1.50% |
| 10 Year | 21.20% | 17.69% | FBGRX +3.51% |
FBGRX has outperformed VIGAX across every major time period — and by meaningful margins. Over 10 years, a $100,000 investment in FBGRX would have grown to approximately $710,000 vs VIGAX's $510,000 — a $200,000 difference. The 3.51% annual outperformance is after FBGRX's ~0.80% expense ratio, meaning the active stock selection contributed approximately 4.3% of gross alpha annually. This is genuinely exceptional for an actively managed fund. The 5-year edge narrows to 1.50% — suggesting some periods are stronger than others for active stock-picking in this space. Use the mutual fund calculator to model specific dollar amounts at different time horizons.
The Fee Gap: What 0.75% Actually Costs You
FBGRX charges ~0.80% annually. VIGAX charges 0.05%. That 0.75% gap compounds significantly — even when FBGRX is outperforming.
| Portfolio Size | FBGRX Annual Cost (~0.80%) | VIGAX Annual Cost (0.05%) | Annual Difference |
|---|---|---|---|
| $10,000 | $80/yr | $5/yr | $75/yr |
| $50,000 | $400/yr | $25/yr | $375/yr |
| $100,000 | $800/yr | $50/yr | $750/yr |
| $500,000 | $4,000/yr | $250/yr | $3,750/yr |
FBGRX must outperform VIGAX by at least 0.75% per year to justify its fees on a before-tax basis. Based on the last 10 years, it has done so by roughly 2.76% net of that hurdle. That said, this outperformance is not guaranteed and may not persist under different market conditions or management changes.
Risk Profile: Both Are Aggressive — FBGRX More So
Both funds are concentrated in large-cap growth stocks — meaning both are sensitive to rate hikes, growth stock multiple compression, and mega-cap tech sell-offs. FBGRX amplifies this risk through active concentration: when managers overweight a stock that underperforms, the damage is larger than in VIGAX's passive, market-cap-weighted structure.
FBGRX Risk Factors
- Volatility 20.13: Higher standard deviation means larger drawdowns in market downturns — as was evident in the 2022 growth stock selloff.
- Active concentration: Manager conviction bets can amplify losses when theses don't play out. FBGRX dropped ~50% in 2022 vs VIGAX's ~33%.
- No small-cap exposure: Blue Chip mandate restricts holdings to large established companies — potential upside from small-cap growth is excluded.
- Manager dependency: Active returns are tied to the quality of portfolio management. Changes in team, mandate, or approach can alter future performance.
VIGAX Risk Factors
- Volatility 17.72: Lower than FBGRX, but still high relative to broad market funds — large-cap growth is an aggressive category.
- Benchmark-bound: VIGAX can never outperform its index — in periods of strong active stock-picking, passive exposure means leaving alpha on the table.
- Mega-cap concentration: Top 10 holdings represent ~50%+ of the fund by market cap — Apple, Nvidia, Microsoft dominate the growth index.
- Sector tilt: Passive growth indexing overweights tech and discretionary — no tactical rebalancing to reduce sector risk during corrections.
Tax Efficiency: A Clear VIGAX Advantage in Taxable Accounts
VIGAX's passive, low-turnover structure generates minimal capital gains distributions. Vanguard's patented ETF share class structure further reduces tax drag. For investors holding in a taxable brokerage account, VIGAX typically distributes very little in annual capital gains — meaning your tax bill stays low until you actually sell.
FBGRX's active trading creates portfolio turnover that can trigger capital gains distributions — even in years when you don't sell any shares. This creates a tax liability that must be subtracted from FBGRX's headline returns when comparing fairly.
⚠️ Taxable account investors: Factor in annual capital gains distributions when evaluating FBGRX. Depending on the year, these can be meaningful — and they arrive regardless of whether you sell shares. In a Roth IRA or 401(k), this distinction disappears entirely. Both funds are equally tax-efficient in tax-sheltered accounts.
How FBGRX and VIGAX Compare to Other Large Growth Funds
| Fund | Style | Expense Ratio | 10-Year Return | Volatility |
|---|---|---|---|---|
| FBGRX | Active | ~0.80% | 21.20% | 20.13 |
| VIGAX | Passive | 0.05% | 17.69% | 17.72 |
| FCNTX (Contrafund) | Active | ~0.86% | 17.45% | 15.42 |
| VTSAX (Total Market) | Passive | 0.04% | 14.57% | 12.94 |
| FDGRX (Fidelity Growth Co.) | Active | ~0.83% | ~22% | ~22 |
FBGRX has delivered the strongest 10-year risk-adjusted performance among major actively managed large growth funds. It outperforms FCNTX on returns at similar cost. Compare a broader set on our full fund comparison page.
Who Should Choose Which?
Choose FBGRX (Blue Chip Growth) if you…
- ✅ Invest in a Roth IRA, 401(k), or other tax-sheltered account
- ✅ Want active management within the blue-chip universe
- ✅ Are comfortable with higher volatility (std dev 20+) for higher potential return
- ✅ Are already at Fidelity (most accessible platform for FBGRX)
- ✅ Have a $2,500 minimum investment available
- ✅ Believe FBGRX's historical outperformance reflects a durable edge
Choose VIGAX (Growth Index Admiral) if you…
- ✅ Prioritize near-zero fees above all else (0.05%)
- ✅ Invest in a taxable brokerage account
- ✅ Want guaranteed large-cap growth exposure without active risk
- ✅ Don't want to monitor or trust an active management team
- ✅ Follow a passive, evidence-based investing approach
- ✅ Prefer a lower-volatility path within the growth category
The Verdict: Which Fund Is Right for You?
FBGRX vs VIGAX is one of the more honest active vs. passive debates in large-cap growth — because FBGRX has actually earned its premium over the long run. A 3.51% annualized edge over 10 years, after fees, is not a coin flip result. That said:
- In a retirement account: FBGRX is defensible. The 10-year return advantage has more than covered the 0.75% fee gap, and tax-sheltered accounts eliminate the capital gains distribution problem. If you are at Fidelity and have a long time horizon, FBGRX belongs on the shortlist.
- In a taxable account: VIGAX has a structural advantage. After applying real-world tax friction to FBGRX's capital gains distributions, the after-tax return gap narrows. VIGAX's 0.05% cost and near-zero capital gains distributions make it the more efficient choice for taxable money.
- For core allocation: Most financial planners would recommend VIGAX as a core large-cap growth holding precisely because it is predictable, cheap, and diversified. FBGRX is better suited as a satellite position for investors who want to express an active bet.
- Bottom line: VIGAX is the default. FBGRX has earned the right to be considered — but only in tax-advantaged accounts, and only for investors who understand they are paying for active management and accepting higher volatility in exchange.
Explore more large-cap growth comparisons: FCNTX vs VTSAX, FDGRX vs FCNTX, VFIAX vs FXAIX. Or compare any two funds using our fund comparison tool.
Frequently Asked Questions
What is the difference between FBGRX and VIGAX?
FBGRX (Fidelity Blue Chip Growth Fund) is an actively managed large-cap growth fund that focuses on established companies — S&P 500 or Dow Jones members, or companies with $1B+ market caps — where managers believe above-average growth potential exists. VIGAX (Vanguard Growth Index Fund Admiral) is a passive index fund tracking the CRSP US Large Cap Growth Index. It owns all qualifying large-cap growth stocks at market-cap weights with no active stock selection or overweighting.
Has FBGRX outperformed VIGAX historically?
Yes — FBGRX has outperformed VIGAX across 1-, 3-, 5-, and 10-year periods as of October 2026. The 10-year annualized edge is 3.51% (21.20% vs 17.69%), which accounts for FBGRX's higher expense ratio. This is a genuinely strong performance record for an active fund. However, past outperformance does not guarantee future results, and the 5-year edge narrows to 1.50%.
What is the expense ratio for FBGRX vs VIGAX?
FBGRX charges approximately 0.80% annually. VIGAX charges 0.05% annually. The 0.75% annual difference compounds into significant wealth over time — on $100,000, FBGRX costs roughly $800/year vs VIGAX's $50/year. FBGRX must outperform VIGAX by at least 0.75% to justify its cost on a before-tax basis.
Is FBGRX or VIGAX better for a Roth IRA?
Both are viable in a Roth IRA, but FBGRX is more defensible in a tax-sheltered account because capital gains distribution tax friction is eliminated. If you believe in active management within the blue-chip growth space, a Roth IRA is the right vehicle for FBGRX. VIGAX is the lower-risk default — guaranteed large-cap growth exposure at near-zero cost.
Which is more volatile — FBGRX or VIGAX?
FBGRX is more volatile (std dev 20.13 vs VIGAX's 17.72). Both are concentrated in large-cap growth and move in similar directions, but FBGRX's active concentration amplifies swings. FBGRX dropped approximately 50% during the 2022 growth selloff; VIGAX dropped roughly 33%. Higher potential upside comes with larger potential drawdowns in FBGRX.
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Disclaimer: This comparison is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Expense ratios, returns, and other fund data are subject to change. Always verify current data directly with Fidelity and Vanguard before investing. Consult a qualified financial advisor for personalized investment guidance.