FXAIX

kiwimancy

There's not much benefit. Other slices of the equity market will be highly correlated to US large caps, so there's not a lot of diversification benefit to them. It shouldn't be too hard to find funds which outperformed FXAIX. Just sort by 10 year returns. But that's not necessarily a reliable way to find funds which will outperform in the future.

Ping-A-Ling-

Honest question of "Why?" Why bother having any other holdings than an S&P Index fund equivalent? I have spent weeks playing with every software program that compares and rates findings has FXAIX (I use Fidelity as a brokerage) outpacing every single other fund; and quite significantly in a lot of cases. International. Small cap. Mid cap. Value (obviously), other growth options. Beats them all. So really, why diversify outside of S&P Index equivalent funds? Even three fund portfolios? I was contemplating doing a very small amount of FBTC just for fun, but why? 98% of all my holdings in my 403b, HSA, Roth IRA, brokerage, and 529 are FXAIX. I've been thinking, "...maybe I need to get into other holdings." But honestly, why? Is there something I'm missing? I see nothing to sway me from this line of thinking. Am I wrong. Please help me understand what would qualify a change. **Other than allocation changes between equities and bonds as I get older**

ServerTechie

I like to pair mid-cap with S&P 500. FSLSX is an active managed mid-cap value fund that has outperformed FMSDX and FSMAX the past 3 years, the only downside is the higher expense ratio. But overall I like this fund and contribute to it every week in addition to FXAIX. [FSLSX comparison](https://fundresearch.fidelity.com/fund-screener/results/compare/snapshot/averageAnnualReturnsYear3/desc/1?order=&tickers=FSMDX%2CFSLSX%2CFSMAX)

donnie_d4nko

83% FXAIX 8% FSMDX 9% FSSNX got this from [https://www.bogleheads.org/wiki/Approximating\_total\_stock\_market](https://www.bogleheads.org/wiki/Approximating_total_stock_market)

sabeche

I have a time horizon of 30+ years and my roth ira is 50% FXAIX and 17.5% SCHD. The last 32.5% is split between vanguard foreign market and small/mid/large cap growth & value ETFs. My taxable brokerage account has some more aggressive positions with holdings in individual companies and sectors I think could outperform the market over the next 5-10 years. I don't day trade or buy anything I don't plan on selling for at least a year.

Nuclear_N

Do the returns beat FXAIX? If not you would be better at Fidelity. Just not know what they charge is a red flag that you are not engaged in your own investments

Fantastic_Mention261

There is some recency bias to this that may or may not play out the same way in the next 25 years. It’s a good idea to have some non-US stocks and a small amount of long term bonds. I know there are a lot of people on Reddit who don’t agree with that, but it’s probably not a good idea to put *all* your money in FXAIX/VOO. You can put 60% of your portfolio in one of those funds and a chunk in an international stock index, and a very small chunk in a bond index and minimize your risk a lot. A three-portfolio approach is also pretty simple. It’s worth pointing out that there have been years-long stretches in which non-US stocks outperform the S&P 500. An international stock index can work as a hedge against VOO and sometimes yields better results.

PM_ME_UR_VSKA_EXPLOD

FSMAX covers the small and mid cap in the US, and it only has a 0.035% expense ratio. It pairs well with FXAIX.

Cruian

>VTI FXAIX makes up over 80% of the weight of VTI. >SCHD Roughly 46% of SCHD's holdings (by count, not weight) are in FXAIX. >VOO Is the same thing as FXAIX. >Im unsure of the strategy I should be taking when deciding between ETFs, and Indexs. * Index based or actively managed describes how the contents of a fund are chosen. * ETF or mutual fund describes how the fund trades. When creating a fund, you pair 1 "contents chosen" with 1 "how it trades" for 4 main types of funds. Examples in parenthesis: ||**ETF**|**Mutual Fund**| |:-|:-|:-| |**Actively Managed**|Actively Managed ETF (ARKK)|Actively Managed Mutual Fund (FBGRX)| |**Index Based**|Index ETF (SCHF)|Index Mutual Fund (FSKAX)| Stick to the "index" row. The "how it trades" isn't a big deal in comparison. >What should I be pairing with FXAIX? FTIHX or similar. Cover the rest of the world, there's been plenty of times it was the US dragging behind. FSMAX or similar. Cover the rest of the US market, while the past decade has favored large caps, smaller companies have had periods of excellent performance as well.

JeffB1517

FXAIX is USA large cap with a growth tilt. You want non-USA, value tilt, small tilt. Something like AVDV / AVDVX (since you like mutual funds) would pair well. VOO, VTI... wouldn't do anything.

Biggiesmalls_____

Hmmm ok. Well it won’t matter where you invest $30 for the month of May. Do you plan on doing further investing….? You say you are young, how young? What are your goals? I wouldn’t worry a while about investing $1 per day. I would just take $30 and invest it into a mutual fund like FXAIX in a Roth IRA and add to it as frequently as possible for as long as possible. I would get off Robinhood and open an account with Fidelity. Open a Roth IRA and put the $30 in one shot to FXAIX or VOO and keep doing that. Once you start learning and figuring things out start to diversify and do other things. But yeah there’s no need to spend $1 per day.

ADynes

$3k in settled cash to buy some dips tomorrow. I'll probably dump it all into VTI or FXAIX and wait for a recovery. J/K I'll do something stupid and lose it as is tradition.

77CrossxX

Hello, I'm a new investor and I have a few question? For starters, I opened a brokerage account with Fidelity and I'm looking to earn passive income. Currently I have the following etf/stocks: 1.Voo 2. VIG 3.VXUS 4.TSM 5.FXAIX 6. AMZN I feel like I'm not diversified because my portfolio is weighted mostly for the technology sector. Should I sell some to invest in other sectors? Am I owning too many etfs? I am thinking about purchasing ETFs for real estate to help diversify. Is that a good idea? All advice are welcome.

CaptainShoddy5330

You should check if there is a large cap growth index fund offered and split between FXAIX and that.

ServerTechie

DCAing every week into my Roth with FXAIX (S&P index so same thing). I do this in addition to a little mid-cap value, some international, and a touch of bond.

Ty-Knight-Composer

I am new to investing. I opened my Roth IRA in March and have contributed the maximum for 2023 and 2024. My time horizon is 20 years. My wife and I both have very good and generous pensions (75% of our top 3 earning years, +3% for each additional year we work). I feel somewhat comfortable with risk given our pensions. Is the following allocation any good? I’ve seen people say not to get into semiconductors because it’s already priced in, and not to chase previous gains - but I’ve never invested before so I am establishing my investment strategy, portfolio, and allocation brand new. I’m not chasing previous gains and do believe in what I understand to be the current and future value of semiconductor technology. I’ve read that adding scv to a broad portfolio based on something like the S&P500 can help provide additional returns above and beyond just putting everything into the S&P500. What are your thoughts? FXAIX: 80% AVUV: 10% SMH: 10%

DC8008008

100% FXAIX is fine for someone your age IMO. But if you wanted to throw in some International you can do 80% FXAIX and 20% FZILX or FSPSX. I wouldn't worry about bonds for 20 years or so. Just my opinion.

Somoch-MoraguerRRR

Fidelity is pretty awesome. I use their cash management account for checking (unlimited ATM fee reimbursement!) and a brokerage account in lieu of high yield savings, in which I hold treasury bills and some of Fidelity’s excellent money market funds (for example FDLXX gets you better after tax yield than a HYSA because it holds treasuries which are exempt from state and local taxes) As an investment platform It’s less automated than Betterment (which I recently moved from) but does most everything you need it to do without the 0.25% fee. If you want automated investing, you can pay for that with Fidelity, too, but at your age I would just go all in on FSKAX or FXAIX and chill, maybe a dash of FTIHX for international exposure if you’re feeling fancy. MUCH later in life you can add bond exposure.

FlyLikeACrane

For context, I am turning 30 this year. So if went the target date fund route, I’d choose the 2055 or 2060 fund. Otherwise, my thoughts are to go 70% into FXAIX, 10% into FSSNX, 15% into FSMDX, and 5% into FTIHX. Would I be better off just going 100% into FXAIX?

Dizzybro

100% into FXAIX

Positive-Fox2248

I’m new to investing. I’m 39 years old, I have two retirement plans 457 (balance 32k) and 403b (9k). I started contributing just recently to my retirement. I contribute about $900 every month to both. My money sit in Fidelity Freedom 2050 Fund Class K FNSBX. I was recommended to move my funds to FXAIX so I get higher rate of return. I know I’m behind so any advice would be helpful. I’m planning to retire in 2050 or later.

tigerclawripu

FXAIX is one of the best Also look into ONEQ , FTEC , and FSKAX. All low expense ratio and follow big companies.

LetsFigureitOutNow

Thank you. I did not want to pay a fee for VOO, so I was hoping FXAIX would be basically the same! Thanks.

LetsFigureitOutNow

I have a question regrading Index funds, I use Fidelity and I am looking for a overall S&P 500 fund, would FXAIX be the same as VOO ?

Fearless_Law4324

I am extremely new to investing. I have about $2,000 I'm willing to invest. I opened a brokerage account with Schwab and bought 2 shares of VOO. That cost me about $950ish. I'm about to take the rest and put it into FXAIX as others seem to highly recommend. Not sure if I should be doing anything else but I don't want to pick individual stocks until I'm way more comfortable with all of this. Any recommendations are very much welcome.

fuckaliscious

Buy the inexpensive, diversified ETFs like FXAIX. IF you want to speculate in individual stocks, you have to be so much better at investing, getting the timing of buys and sells correct, keep individual stocks to less than 10% of your net worth is my recommendation. Just look at Apple, up 10% in the last 12 months. Meanwhile, FXAIX is up 26% over the same time frame. McDonalds is down 4% over the last 12 months. Which you want to be? Up 26% or only up 10% or even down 4% buying McDs. Given the stocks you picked, it's better to go with diversified ETFs.

packetheavy

FXAIX is Fidelity's fund that tracks the S&P 500, it's a great fund that owns parts of all the big US companies the you listed, it also has a very low expense ratio, I would (and do) consider it a great addition to a the growth portion of your portfolio.

CelticsWin7

No you didn't screw up. I have a 401k, Roth IRA, HSA, and Taxable brokerage account. There's different rules for different accounts are far as when you can take the money out and if you'll be taxed or not, but for the most part you can basically invest in anything within those account. Except for 401k, they are limited, but FXAIX is a great choice.

Aspergers_R_Us87

Would I have to sell all my FXAIX stocks than reinvest it back into a new brokerage called Ira?

MandamusMan

If you’re already putting 26% of your income towards retirement, there’s nothing wrong with saving more in a taxable brokerage. A lot of financial gurus would say to max out a Roth IRA or pre-tax IRA for the tax advantages, but you are right, you wouldn’t be able to touch them without penalty for a few decades. I’d also suggest making sure you have 3-6 months of expenses saved in a high yield savings account as cash, as well, in case something comes up you need cash for when the market is down, so you don’t have to lock in your FXAIX losses to get money

kerapang

Tax fine on what? Income tax on your gains in FXAIX? How much did you make that 20% income tax would be a huge tax fine?

kerapang

Why would you have screwed up? It’s not like an irreversible decision. You can also open a Roth on Fidelity and sell your FXAIX and transfer it to your Roth? I’m not sure I’m following the concern here.

tonyMEGAphone

You know I went to check on mine to see what I had and I've been in the FXAIX w/ half my port for the last 20 years. Just adjusted my dividends back in. Had another huge chunk just sitting in the money market not making me anything. 

MindlessM24

How would you feel taking that money and putting that money into a fire? Would it really impact your life if it was all gone or would it not impact the way you live at all? Regardless, do not pick MEME stocks. Pick stocks that are actually profitable. If you wouldn't miss it, I would personally put it in a semi conductor fund (FSELX). If you WOULD miss it, I would stick it in FXAIX and keep adding small amounts monthly through auto investing.

Aggravating-Ad-6460

Not sure how old you are but definitely start putting something back. I wish I had done it sooner. I am 42 so I am trying to play catch up and learn as much as possible. I think my anxiety has cooled down some and I am just going to start automatically investing a set amount weekly. If I have larger amounts to throw in at times I may try to buy in on an ETF where I can determine the value when I buy in. As of now I am all in on FXAIX but I did add FZILX today to diversify some.

ADynes

Look at VOO or QQQ or FXAIX 5 year returns. All 90% - 100% or 20% yearly on average. Best you're getting in bonds or a hysa is maybe 5%

SnS2500

> in theory would give me more dividend payout. No, they give you exactly the same. Five $20 bills is the same as one $100 bill. VOO is clearly superior in a taxable account, but even in a non-taxable account there is no reason to choose FXAIX.

TheBioethicist87

FXAIX. A lot of the suggestions here are confusing “aggressive” with “stupid.” The SP500 is down right now but if we get a handle on inflation (and it is an election year so there’s incentive for the economy to be in shape) big companies could do well. No need to put all your eggs in a small basket.

Xzyrvex

Depends on your age, under 30 then only FXAIX should be fine (maybe some international exposure though), above that start thinking about r/bogleheads and the things over there. (BIG shout-out to r/bogleheads, they might be boring but they are pretty damn good. Just make sure it fits what you see is good, not what others do.)

TwentyPercentPlease

So should I only invest in FXAIX if I were to go that route or should I include that in like a 3 fund portfolio like another user suggested? Sorry for the questions I’m very new to all of this. I plan on checking out the wiki for other stuff as well.

Xzyrvex

If you want tech based then get a tech ETF like VGT or FTEC, doesn't make much sense to get a NASDAQ fund to get a tech fund. FXAIX has really low expense ratio at .015% which is half of VOO and 1/6th of SPY. It's also giant with 500 billion AUM and is highly regarded because of its size and expense ratio.

TwentyPercentPlease

The only reason I was gonna go with QQQ is because I figured a tech based fund would be good going forward. Would also love to hear why you recommend FXAIX also. Thanks for the info so far.

Xzyrvex

Just set up a recurring investment weekly, biweekly, monthly, or even quarterly for FXAIX and let it sit. Just make sure to max it out each year and don't worry about anything you read on the news. If you really have a reason to buy QQQ then go for it, (but get QQQM), but most people are just preformance chasing with it. If you want I'll go over why exactly I reccomend FXAIX instead of all the rest. Good luck! :)

ChampionshipJolly657

Doesn't matter when you have 20+ years till retirement. I tried timing the market and doing individual stock picks when I first started investing, if I would have just simply bought VOO (or FXAIX) on a routine basis and never looked at market prices I would be up so much more than I currently am.

PatricksPub

Well, each of those funds will have almost identical performance, as they track the exact same index. FZROX and FXAIX are both mutual funds. Main differences are that FZROX has no fees or expenses, so you don't pay anything to buy, own, or sell the shares. FXAIX will have a very small fee attached to it, but it's insignificant in the grand scheme of things honestly. Another difference is FXAIX will pay your Dividends monthly, whereas FZROX pays annually. So you'll wait longer on FZROX but the total payout will be the equal, unless you reinvest the monthly Dividends of FXAIX, in which case you'll earn incrementally more from your Dividends compounding.

redbackjack

Grandpa gave a similar gift and a few $100 bills here or there. Anything $100 or above we add to the UTMA that’s in FXAIX (fidelity’s 500 fund). It’s hers when she’s 18/21ish. College is on us as parents unless the gift is specific for that (half of grandpa’s gift was). So we fund the 529

PatricksPub

FZROX and FXAIX are both S&P 500 funds offered by Fidelity. FZROX has 0 expenses, as in 0.00% but is only offered through Fidelity directly.

bluedog628

Hi All!! I graduated from college last year, am now making about 50k (in a fellowship position, so no 401k available yet) and want to think about investing for the future. I have a slew of random conservative ETFs and such I dump into now and then (VOO, VTI, QQQM, SPY, etc) and money in cash funds if that's what they even are (SPRXX, FDRXX, FXAIX, etc) and a few random stocks here and there (google, apple, Microsoft), but truly I have no idea what I am doing. I wanted to ask about any advice you wish you had at 22 when it came to managing your money. Is a high yield savings account needed? how do I make one, where, how much do I put in? Should I open a Roth IRA? How do I learn what the hell that really is and what I need to do to have one? Where should I be learning this kind of stuff? I'm currently saving over $1000 a month but its just sitting in a checking account... so please lmk what I should be doing that's a little bit more risky than this because I know I'm young, but also not too crazy like trading stocks, which I am simply not cut out for.

Cruian

Most target date funds I'm familiar with seem to keep a fairly constant ratio of US to ex-US from day 1 until they close. So age and timeline don't play a role in figuring the US to ex-US ratio. Why ignore thousands of US companies by going FXAIX instead of FSKAX?

AICHEngineer

Everything to do with the cost of pooling and investing in mutual funds is included in the expense ratio. It simply depends on the type of fund and their piping for how tax efficient they will be. For example, FXAIX is a mutual fund (indexing to the s&p500) and it's expense ratio is only 0.015. The mutual fund vehicle for investing isn't as efficient as exchange traded funds tax wise, but they can still be extremely efficient depending on how they handle their shares and turnover.

the_leviathan711

The market weight of FSKAX and FTIHX is 62% FSKAX/38% FTIHX. FXAIX is about 85% of FSKAX. Your age/time horizon isn't particularly relevant to this question since no one knows whether US stocks or international stocks will perform better in the future. What is relevant there is whether or not you want bonds in your portfolio or not.

Ok_Assignment4100

Thank you. What would the perfect allocation be for FXAIX and FTIHX? Considering my age (38) and time horizon?

vorvanator

I split my Roth investment between one of fidelity’s target retirement date funds (2055) and FXAIX because I want to be more aggressive and I have 30 years before retirement

the_leviathan711

> 1) Is there anything else to add along with FXAIX? Like, is it important to be as diversified in my retirement portfolio? My goal is to keep it simple to focus on capital gains/total returns from one fund. But, if there’s suggestions to make it a 2-fund or 3-fund portfolio, I’ll have a listen to suggestions as well as handle my due diligence. Yes, diversity is great! FXAIX is only the top 500 companies in the US stock market. The two obvious complements to FXAIX would be to add small cap US stocks and international stocks. FSMAX is the equivalent of FXAIX for smaller caps and FTIHX is the equivalent for international stocks. You can also do FSKAX which is FXAIX + FSMAX and then add in FTIHX. > 2) Since Roth IRA is a tax-advantaged account (After-tax dollar grow tax free), are dividend ETF funds something I should consider? Or look into dividends in general if I want to generate cash flow later in my retirement? Nah > 2) Would lump-sum investing or DCAing investing be ideal? [Don't try and time the market, just invest the money as you have it.](https://www.schwab.com/learn/story/does-market-timing-work)

bluedog628

Hi All!! I graduated from college last year, am now making about 50k (in a fellowship position, so no 401k available yet) and want to think about investing for the future. I have a slew of random conservative ETFs and such I dump into now and then (VOO, VTI, QQQM, SPY, etc) and money in cash funds if that's what they even are (SPRXX, FDRXX, FXAIX, etc) and a few random stocks here and there (google, apple, Microsoft), but truly I have no idea what I am doing. I wanted to ask about any advice you wish you had at 22 when it came to managing your money. Is a high yield savings account needed? how do I make one, where, how much do I put in? Should I open a Roth IRA? How do I learn what the hell that really is and what I need to do to have one? Where should I be learning this kind of stuff? I'm currently saving over $1000 a month but its just sitting in a checking account... so please lmk what I should be doing that's a little bit more risky than this because I know I'm young, but also not too crazy like trading stocks, which I am simply not cut out for.

ApplicationNo51

Good points. Looking at the visualized tool however, it still shows FBGRX higher at 17% vs VOO at 12%. It seems like fbgrx outperforms the market when it’s going up, and underperforms when it’s going down. But considering that the market is going up overall over the long term, it’s been coming out ahead? Maybe fbgrx is good while my risk tolerance is higher and then bias more broad market VOO/FXAIX later on?

Shaggys_chin_hair

I use Webull for both my main account and my IRA and i really like it. You can’t get interest in your uninvested cash within the IRA but if you just keep it invested in a S&P Index fund like VOO or FXAIX then you’ll probably do better than 5%. Also webull has a setting where you can easily switch to descending strikes. Also, if you open a cash account (different from an IRA) you can get 5% back on your uninvested cash, but then again it’s not an IRA

newtotexas22

$10,000 invested in T-bill at 5.2% will give you equivalent of $10/week So if you buy $10k T-Bills for 4 weeks, you will earn $40 by locking away $10k for 4 weeks. This $40 is exempt from State and Local Income Tax but you still pay Federal Income Tax. Actual returns of a 4-week T-bill in the last 6 months has been around 5.35%-5.42%, but I guess you get the idea that the interest is stated annually and paid pro-rated depending on duration of your T-bill Your biggest loss is opportunity cost, for example, $10k invested in FXAIX at start of the year would have give you around $980 by now (subject to state, local and federal tax). However this $10k would have given you just over $140 from T-Bills.

hydrocyanide

In no universe has FDKLX outperformed FXAIX.

Tannhauser1982

Growth funds like FBGRX and HRSMX have lower expected return than the broad market (funds like FXAIX). If you want to keep it simple with high expected return, I would suggest standard total market funds or similar. [See here](https://github.com/investindex/Portfolio) for detailed explanation of why growth funds don’t have high returns in the long run.

ApplicationNo51

Diversification in 401k doesn’t seem right? It’s been 3 years at current employer and I’ve allocated the 401k in the following FBGRX DODGX UBVFX HRSMX VEVIX FTIHX 30% each in the first two for mostly us exposure, and then 10-15% in the rest. 3 years later, fbgrx has returned 36% meanwhile everything else is single digits, some even under 5%. Another option available is FXAIX.. recently added. At this point I’m considering reallocating to 70% FXAIX and 30% FBGRX. Thoughts? I’m 32. Have 75k in this account and am maxing it now. Have another 200k an older 401k that’s mostly in a sp500 index fund. I know I’m proposing very heavy US only.. but also relatively young.

taplar

I don't really get the feeling that people who are jumping on the AI train are going after SPY/VOO/FXAIX. They're going after the specific companies that are being hyped up by AI.

Mt_Koltz

This is what I've been doing for nearly 10 years now. My only concern is that this advice is becoming so much more common nowadays. It just feels like eventually something is going to go wrong DCAing into VOO or FXAIX, and we're all going to say "Well I guess we all thought it would just work forever".

RustyR4m

20 bucks to FXAIX

Glittering_Promise18

How come FNILX in HSA vs Roth IRA? I just added some funds to FNILX myself in my Roth IRA. Just wondering if I'm better off with FZROX for that. Also do you have any input on FXAIX and FSKAX?

GaylrdFocker

Zero reason to have VTI/VOO/FXAIX all at the same time. Do not use TQQQ (notice how TQQQ never returned to all time high even though QQQ did) or individual stocks, and QQQM is fairly close to VUG., you could pick VUG instead of QQQM but wouldn't do both either. Holding VTI and QQQM/VUG is very aggressive and a decent long-term plan, but you should have 20-30% Intl fund (VXUS or similar). >I read online that this may be too safe for someone my age  Not at all. 100% equities is not "safe" it's very aggressive and being 100% US is more aggressive because Intl has outperformed US and the past and may again, just hasn't lately.

SirGlass

>Would it be better if I opened a high yeild saving account linked to ETFs? Or a different kind of account to see similar results? Thats nor really a thing a HYSA is a banking product they cannot hold securities like ETFs. You may be thinking of investing in some short term bond ETF , these are very save and will return 4-5% per year with current interst rates but the returns will fall if interest rates fall >I am also aware of investing to much into to many ETF's, as that will reuin my returns. This isn't really true its just that its un-neccissarry , for example FXAIX and VOO are basically the same fund. They both track the S&P500 index. There is no reason to invest in both because they are the same thing. There really isn't a draw back however either . Its like why open up two HYSA at two banks if they both return 5%? I guess there isn't a down side but there really isn't a reason to do either 12% is probably too high to assume you will get, also remember equities funds like S&P500 or Nasdaq have great long term returns over 30 years, it does not mean they go up 10% each year every year. They can lose 50% plus and stay flat for several years

menialspy4

Hello everyone, I am 22 and making bearliy 30k a year, working part time and full time in college. Im currently saving 105$ a week/ 420$ a month. With no current debt. I want to save up for down payment for a house, within the next 10-15 years. I don't find it worth opening a Roth IRA at my current age as I want to use the money within the next 10/15 years as a downpayment for a house. Nor do I have a 401k yet, so a roth IRA wouldn't benefit me much yet. I know of the 10,000 free fee deduction for a downpayment, but common lets be realistic, 10k for a downpayment is like pennys. I currently have a brokerage account with Fidelity and been using it to invest my 105$ weekly. Currently I am holding VOO, QQQ, and FXAIX. Im worried about the fees and taxes eating away at my long term gains, but this is the price that has to be paid if I want to access my funds sooner. Would it be better if I opened a high yeild saving account linked to ETFs? Or a different kind of account to see similar results? I am also aware of investing to much into to many ETF's, as that will reuin my returns. As I've decided I probably want to just invest mainly into the S&P 500, and NASDQ, My goal is to reach an annual avrage return rate of at least 12%. Would I be able to make this with only investing into the ETFS, and index funds? And if so I should mainly stick with only a couple or one ETF? Thanks a bunch guys!!

ADynes

I'm holding close to 150k of FXAIX and every time the markets down and I see a negative two or three k for the day I just move over to the total gain loss column, smile, and close the app.

ADynes

This is an awful idea. Throw it in a mix of VTI/QQQ/FXAIX and you should have 600k in 5 years.

kewli

Good call out. The makeup of the fund is very similar. FZROX are newer funds on the block- and so far it doesn't quite have the same performance as FXAIX. If FXAIX does 0.1% better than FZROX then the 0.015% fee is worth it IMHO. Additionally, for me I already have FXAIX and it's fantastic. The 0.015% is negligible fee on a large sum over several decades. On $1 mil for ten years it's only less than 3K. Not saying I have a mil, but the overhead for expenses isn't worth the tax burden for me to sell shares I purchased before FZROX was a thing. But I'd say go for it!

smokshock

My bad. I rounded down to 10%. Historically FXAIX has returned 11.7% in the last decade so that’d be about 900k. Not sure how you got 387k

Key-Mark4536

Pretty much. That means razor-thin spreads for trading and options. For buy & hold you’re better off with the cheaper versions: SPLG, FXAIX, VOO… 

mildlymashedpotatoes

I think “skyrocket” reads as get rich quick scheme but I’m 30 and in a similar situation as you so I get what you mean. Average market return is like 8% so I think so I’d focus more on long term growth and not quick 10-20 year growth. I’ve tried and failed to out think the stock market - it’s a long game and if you’re in the market, you’re ahead of the game already. Your best bet is to stick your money in a variety of well balanced funds that track the overall market or are in sectors that will for sure keep growing like microchips (my fav funds are VOO, QQQ, FXAIX, FSPTX).

kewli

This is the way, FXAIX if your fidelity

Cruian

They had a typo, they meant FXNAX, not FXAIX.

QuirkyAverageJoe

What's FXAIX?

smokshock

FXAIX

UserLostBadly

If I am not mistaken mutual funds generate more capital gains hence less tax efficiency. Another insignificant downside is that mutual funds can be traded only after the market closes. I went with FXAIX for my 401K and with VOO on my brokerage account.

CyberFlux_

Good evening. I am 30 years of age, unemployed, with 25k in my savings, and 8k in my 401k Quick question. Should I start a Roth IRA with fidelity and invest $100 a month (and any leftover change) into FXAIX? Or, just allocate a higher percentage of my pay ( in my next job) to my 401k? Is it good to have both? Thoughts? Suggestions? Cheers.

ADynes

MFW I'm going into tomorrow holding a whole bunch of 520p but also a 200k mix of VOO and FXAIX. 

Dapper_Dune

Lame. I do 100% of mine in FXAIX and have been killing it. How old are you?

DOGO8991

FXAIX

Koen_Da_Brain

Any s&p 500 etf with decent expense ratios. Mines FXAIX cause it has an expense ratio of 0.02%

redhill_qik

Job titles? No, that isn't needed. Go to one of the big four low/zero cost financial companies, ETrade, Schwab, Vanguard or Fidelity. Open a Roth IRA account, transfer funds from your bank to the Roth IRA (you can do this for the year 2023 until April 15th and 2024) up to the amount of your earned income for the year (if you only had income of $5,000 in 2023 then you can only contribute $5,000 for 2023). Once the money is in the account do one of the following: * Buy a Target date fund for 2065 or 2070 (the year you would retire) like VSVNX (Vanguard Target Retirement 2070) * Buy a S&P500 fund with low expense ratio like VFIAX (Vanguard), FXAIX (Fidelity), or SWPPX (Schwab) Recommending buying the mutual fund version of the S&P500 over the ETF so that you can invest in dollars and not have to buy whole shares.

No_Temperature_9441

FXAIX 👀 at

taplar

Sure, there are any number of funds that track the S&P 500. To name a few; VOO, SPY, FXAIX, and SWPPX.

Sgt_Sauris

New to ROTH IRA - Opinions wanted regarding my current plan. I (22M) was thinking of doing the following: 50% - FXAIX 30% - QQQM 20% - SOXX I don't want to have to manage the account too often, so I wanted fire and forget investments that have a decent blend, excluding the tech investments. I work in tech and stay most up to date with what's going on in that industry compared to others like real estate and health. So I don't mind a more aggressive approach in that regard, but otherwise diversified investments with average to low risk is what I would prefer, as this is where I will be putting most of my savings aside from my company 401k. Thank you in advance for your insight!

Same_Bag711

That sent before I saw your response. I’m invested in FXAIX, AVUV, SMH, COST, and added a bit of IBIT just incase. Will be adding some international diversification in the near future. These are my long term investments, but I also swing trade.

Key-Mark4536

Especially with big index funds. The expense ratios for FXAIX (0.015%) and SWPXX (0.02%) are comparable to SPLG (0.02%) and VOO (0.03), and they all track the same thing.  I would say though that some fund *companies* seem to rely on client inertia or perhaps a captive audience. BSPAX is an iShares S&P index fund and they charge 0.35%. The same company’s exchange traded equivalent (IVV) charges only 0.03%.

ADynes

I dumped a bunch in FXAIX when I don't want to hold cash and it consistently beats all my other plays.

UserLostBadly

Mutual funds are less tax efficient. I think FXAIX is good for retirement account, I'd go with an ETF for an investment account.

harvard378

FXAIX (and FSKAX, in case a total market fund is preferred) haven't had a taxable event since 2019.

DribbleBaby

You're on the right path already. If you're opening with Fidelity for your IRA, just open a taxable brokerage and invest in more FXAIX.

HipOut

VTI or FXAIX or VOO. Pick one not all three

smokshock

FXAIX

SnooPickles3280

You don’t. At that level dump it all into something like FXAIX and forget about it for 30 years.

VenJules

A HYSA is a lot more stable with a 4-5% return. You just have to take note that rates are going to change, so make sure to check sites like Bankrate or [Banktruth](https://banktruth.org/savings) for the updated highest APY rates. Also, FXAIX could potentially double that return but comes with some risks too. What you can do is split savings between HYSA for some guaranteed growth and FXAIX for higher, but variable, gains. After some time, though, when you do reach your goal, shifting more into the HYSA could be a lot safer too.

Register-Capable

I also posted on the beginner forum and it was suggested to me to invest it in FXAIX. As I said, I don't really understand any of this. Just want to make sure I am putting the money in a good place. I only received 50% of my husband's pension, our retirement was planned with 100% and him living to his full retirement age. I was hoping to be able to make up some of the shortfall.

throwawayinvestacct

>If I invest $10.5k (2 shares) into the S&P 500 today, how much would it grow to in 35 years? First, small thing, but you don't buy shares of the S&P500 directly. It's an index, basically a model portfolio that so-called "index funds" will track. So, if you wanted to invest in the S&P, you'd buy an S&P index fund like VFIAX, VOO, FXAIX, or SWPPX. $10.5k invested is $10.5k invested (the share *price* of these funds is different, but that's irrelevant: a 5% jump in the S&P should yield essentially a 5% jump in these funds, e.g.), just wanted to clarify that. As to your actual question, there are absolutely no guarantees, so nobody can tell you the answer definitively. However, you've identified the usual rules of thumb used to provide a estimate: (1) the S&P has *historically* returned 10+% annually (on average) *over the long-term* and (2) if you want to inflation-adjust those returns (so that you're talking entirely in today's $$$s), [inflation has been on the order of ~3% over the last several decades](https://www.advisorperspectives.com/dshort/updates/2024/03/12/inflation-cpi-since-1872). Combined, that would mean on the order of ~7% "real" returns from the S&P in the past several decades. Again, that's not guaranteed to occur—the market could suddenly get hotter/colder than usual for a long spell, or inflation could be way better/worse over the next 35 years than it's been the previous 35—it's just a reasonable historical baseline to start from. From there, yeah, it's just a compound interest calculator. [I like this one, as it's simple and you can add in some +/- variance ranges](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator). 10.5k, with no further contributions, growing at 7% annually (I did compounding daily, looks like you did annually, whatever) is $121,649.06. At 6% it's $85,729.99 and at 8% it's $172,615.82. You are guaranteed that return in 35 years, but if general historical trends hold true in the future, that's a fair estimate of what you'd see. Small final caveat: if you held this in a so-called "taxable" account (i.e., a normal brokerage account instead of a "tax-advantaged" retirement account like a 401k or an IRA) your investment would be subject to *slight* taxation over the course of the 35 years. No major capital gains/losses to worry about if you're not selling, but it would likely generate *small* dividends each year, which would be taxable. E.g., [VFIAX has a 'yield' the past twelve months of 1.35%](https://www.morningstar.com/funds/xnas/vfiax/quote), meaning it paid out 1.35% of its value in dividends (which are likely taxable, if it's held in a normal brokerage) the past 12 months. Those dividend returns (which you'd be reinvesting) are part of the return you're expecting in this hypothetical, but because they're taxed, you'll actually end up netting *slightly* less after paying Uncle Sam. However, that's not a huge impact: e.g., 1.35% is $10.5k is $141.75, how much would you owe in taxes on an extra $141.75? Not much. Nonetheless, wanted to mention it.