SWPPX vs FXAIX (2026): Two Nearly Identical S&P 500 Funds, One Clear Tiebreaker
SWPPX (Schwab S&P 500 Index Fund) and FXAIX (Fidelity 500 Index Fund) are as close to twins as two mutual funds can be. Both track the S&P 500, charge near-zero fees, have no minimums, and have returned nearly identical results over every time period measured. Here's what actually separates them — and how to choose.
SWPPX vs FXAIX: At a Glance
| Metric | FXAIX | SWPPX |
|---|---|---|
| Full Name | Fidelity 500 Index Fund | Schwab® S&P 500 Index Fund |
| Index Tracked | S&P 500 (same for both) | |
| Expense Ratio | 0.015% | 0.02% |
| Minimum Investment | $0 (at home brokerage) | |
| Assets Under Management | $715B | $134B |
| Fund Age | ~15 years | ~29 years |
| 1-Year Return | 30.69% | 30.68% |
| 5-Year Annualized | 12.41% | 12.40% |
| 10-Year Annualized | 14.77% | 14.74% |
| Dividend Yield (TTM) | ~1.16% | |
| Annual Turnover | 3% | |
*Returns are approximate and based on recent historical data. Past performance does not guarantee future results.
Performance: So Close It's Almost Irrelevant
Both funds track the same index — the S&P 500 — so their returns are nearly identical. The 10-year gap is 0.03%. On a $10,000 investment, that's roughly $30 in total difference over a decade. Their correlation is 1.00. They move in lockstep because they hold the same 500 companies in the same proportions.
There is no meaningful performance distinction between these two funds. The choice comes down to everything else.
The One Difference That Actually Matters: Expense Ratio
FXAIX charges 0.015%. SWPPX charges 0.02%. That's a gap of 0.005% — five one-thousandths of a percent. On $100,000 invested, the annual difference is $5. Over 30 years compounded at 8%, you'd come out roughly $400 ahead with FXAIX.
FXAIX has a technical fee edge, but it's not a reason to switch brokerages or restructure your accounts.
The Real Tiebreaker: Where You Invest
Both funds are available at multiple brokerages, but transaction fees change everything:
Which Is Right for You?
Choose FXAIX if you…
- ✅ Have a Fidelity brokerage or retirement account
- ✅ Want the absolute lowest expense ratio in this category
- ✅ Are building a core long-term position at Fidelity
- ✅ Are a new investor with less than $3,000 to start
Choose SWPPX if you…
- ✅ Have a Schwab brokerage or retirement account
- ✅ Prefer Schwab's tools, interface, or customer service
- ✅ Are consolidating investments at Schwab
- ✅ Already hold SWPPX in a 401(k) at Schwab
Bottom line: Fidelity customer → FXAIX. Schwab customer → SWPPX. If you're not yet a customer of either, FXAIX has the slight fee edge at 0.015% — but it won't materially change your retirement outcome.
Frequently Asked Questions
Is FXAIX or SWPPX better?
They're functionally identical. FXAIX has a slightly lower expense ratio (0.015% vs 0.02%), but the difference is negligible. The better choice is whichever is available at your brokerage without a transaction fee.
What is the difference between SWPPX and FXAIX?
Both track the S&P 500 and hold the same 500 companies. FXAIX charges 0.015% vs SWPPX's 0.02%. FXAIX has $715B in AUM vs SWPPX's $134B. Their 10-year returns differ by 0.03%. The only meaningful difference is which brokerage offers it fee-free.
Can I hold both SWPPX and FXAIX?
You can, but there's no benefit. They track the same index and hold the same stocks in the same proportions. Owning both provides zero additional diversification.
Does SWPPX pay dividends?
Yes — quarterly. The trailing 12-month yield is approximately 1.16%. FXAIX pays the same yield. Most investors reinvest dividends automatically.
What is the minimum to invest in SWPPX?
$0 at Schwab. At other brokerages, SWPPX may require a $2,500 minimum and/or a transaction fee.
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