Every fund below tracks the same index, the S&P 500, so their holdings and long-run returns are nearly identical. What differs is cost, structure and where each one is cheapest to own. Picking among them is mostly about which brokerage you use.
| Ticker | Fund | Type | Expense ratio | Best fit |
|---|---|---|---|---|
| VOO | Vanguard S&P 500 ETF | ETF | 0.03% | Any brokerage, long-term holding |
| IVV | iShares Core S&P 500 ETF | ETF | 0.03% | Any brokerage, same role as VOO |
| SPYM | SPDR Portfolio S&P 500 ETF | ETF | 0.02% | Any brokerage, lowest-cost ETF option |
| SPY | SPDR S&P 500 ETF Trust | ETF (unit trust) | 0.0945% | Active traders and options; not the cheapest to hold |
| FXAIX | Fidelity 500 Index Fund | Mutual fund | 0.015% | Fidelity accounts and automatic investing |
| SWPPX | Schwab S&P 500 Index Fund | Mutual fund | 0.02% | Schwab accounts and automatic investing |
Expense ratios as of September 2026. Fund companies change fees occasionally, so confirm on the fund's page before buying.
Does the fee difference matter?
Less than you'd think between the cheap ones. On $100,000, the gap between 0.015% and 0.03% is $15 a year. The bigger difference is SPY: its 0.0945% fee costs about $95 a year on the same amount, roughly three times VOO. SPY is built for traders, with huge volume and the deepest options market, which is why it stays popular despite the higher fee.
How to choose
- At Fidelity: FXAIX is the cheapest option and makes it easy to invest a fixed dollar amount automatically.
- At Schwab: SWPPX does the same job there.
- Anywhere else, or if you might switch brokers: an ETF like VOO, IVV or SPYM. ETFs move between brokerages easily; some mutual funds can only be held at their own company.
- In a taxable account: ETFs tend to be slightly more tax-efficient.
One fund is enough
Owning VOO and IVV and FXAIX doesn't add diversification. They hold the same 500 companies. Pick one and add to it. If you want more breadth, the next step is a total-market or international fund, covered in the 3-fund portfolio.
Educational only, not investment advice.