SWPPX vs FXAIX (2026): Two Nearly Identical S&P 500 Funds, One Clear Tiebreaker

SWPPX and FXAIX are as close to twins as two mutual funds can be. Both track the S&P 500. Both charge near-nothing in fees. Both have $0 minimums. Their 10-year annualized returns differ by 0.03 percentage points.

That near-identical performance is the story — and it's actually a useful one. If you're choosing between these two funds, you don't need to agonize over investment merit. You need to know which brokerage you're using.

Here's the complete breakdown.

Quick Comparison

Performance: So Close It's Almost Irrelevant

Both funds track the same index — the S&P 500 — so their returns should be nearly identical. The data confirms it:

The 10-year gap is 0.03%. On a $10,000 investment, that's roughly $30 in total difference over a decade. There is no meaningful performance distinction between these two funds.

Their correlation is 1.00. They move in lockstep because they hold the same 500 companies in the same proportions.

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.

It's real but tiny. Over 30 years, compounded at 8% annual growth, you'd come out roughly $400 ahead with FXAIX — a rounding error at the scale of a retirement portfolio.

Bottom line on fees: FXAIX has a technical 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 there's a catch: transaction fees.

FXAIX at Fidelity: No transaction fee. You buy and sell at NAV with no cost.

SWPPX at Schwab: No transaction fee. Same deal.

FXAIX at Schwab: May incur a transaction fee (sometimes $49.95 per purchase) or may not be available at all.

SWPPX at Fidelity: May require a minimum of $2,500 and/or a transaction fee.

This is the only decision that meaningfully affects you:

• If you invest at Fidelity: Use FXAIX. Zero cost, zero friction.
• If you invest at Schwab: Use SWPPX. Zero cost, zero friction.
• If you invest elsewhere (Vanguard, Merrill, etc.): Check whether either fund is available commission-free. If neither is, consider VFIAX or a low-cost S&P 500 ETF like VOO instead.

Who Is Each Fund For?

FXAIX is the better choice if:

• You have a Fidelity brokerage or retirement account
• You want the absolute lowest expense ratio available in this category
• You're building a core long-term position in a 401(k) or IRA at Fidelity

SWPPX is the better choice if:

• You have a Schwab brokerage or retirement account
• You prefer Schwab's tools, interface, or customer service
• You're consolidating investments at Schwab

Both are equally good if:

• You're evaluating purely on investment merit — neither has the advantage
• You're holding inside a tax-advantaged account and don't care about tax-efficiency differences

Scale and Liquidity

FXAIX is one of the largest mutual funds in the world at $715 billion in assets. SWPPX is substantially smaller at $134 billion.

For practical investors, this doesn't matter. You're not trading fund shares on an open market — you buy and sell at NAV directly with the fund. Liquidity is never an issue for either fund.

The scale difference does reflect the fact that Fidelity has more accounts and more retail investors. Both funds are well-managed with long track records.

S&P 500 Exposure: What You're Actually Buying

Both funds give you the same thing: ownership stakes in 500 of the largest U.S. companies, weighted by market capitalization.

Top holdings (identical in both funds):

1. Apple (~7%)
2. Microsoft (~6%)
3. NVIDIA (~6%)
4. Amazon (~4%)
5. Alphabet (~4%)

The S&P 500 is heavily concentrated in technology — the top 10 holdings make up roughly 30–35% of the index. If you want broader U.S. market exposure including mid- and small-cap stocks, consider FSKAX (Fidelity Total Market) or VTSAX (Vanguard Total Market) instead.

Tax Efficiency

Both funds have 3% annual turnover — among the lowest possible. Low turnover means minimal capital gains distributions, which matters if you're holding in a taxable brokerage account.

In retirement accounts (401(k), IRA, Roth), tax efficiency is largely irrelevant — gains compound tax-deferred or tax-free regardless.

SWPPX vs FXAIX vs VFIAX: The Big Three S&P 500 Funds

All three are excellent funds. The differences are marginal. Your brokerage relationship is the determining factor.

See our full VFIAX vs FXAIX comparison for a deep dive on those two.

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 in dollar terms. The better choice is the one available at your brokerage without a transaction fee.

Can I hold both FXAIX and SWPPX? You can, but there's no benefit. They track the same index, hold the same stocks, and move identically. Owning both provides zero additional diversification.

Does SWPPX pay dividends? Yes — quarterly. The trailing 12-month yield is approximately 1.16%, roughly $11.60 per year per $1,000 invested. FXAIX pays the same yield. Most investors automatically reinvest dividends.

What's the minimum to invest in SWPPX? $0 at Schwab. Some other brokerages may impose a transaction fee or minimum. At Fidelity, SWPPX may require $2,500 and/or a commission.

Which fund should I use in my 401(k)? Use whichever one your plan offers. Many 401(k) plans include one of these funds — or a similar institutional share class — as the S&P 500 option. Check your expense ratio on the plan's fund menu; institutional shares are sometimes even cheaper than retail share classes.

Bottom Line

SWPPX and FXAIX are interchangeable for all practical purposes. They track the same index, charge near-zero fees, require no minimum investment, and have delivered nearly identical returns over every measurable time period.

The decision is simple:

• Fidelity customer → FXAIX
• Schwab customer → SWPPX

If you're not yet a customer of either, the slight fee edge goes to FXAIX at 0.015% — but it won't materially change your retirement outcome.

What matters far more than the fund you choose: how much you invest, how consistently you invest, and how long you stay invested. Both of these funds will give you exactly what you came for — low-cost, diversified exposure to 500 of America's largest companies.

Use our fund comparison tool to compare SWPPX, FXAIX, and other S&P 500 funds side by side.

This article is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Consult a qualified financial advisor before making investment decisions.