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Home/News Feed/Fidelity's FXAIX fund has lower fees but higher tax costs than Vanguard's VOO ETF in taxable accounts.
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Fidelity's FXAIX fund has lower fees but higher tax costs than Vanguard's VOO ETF in taxable accounts.

Market News
13 Aug 2026
24/7 Wall Street
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Fidelity's FXAIX fund has lower fees but higher tax costs than Vanguard's VOO ETF in taxable accounts.

Fidelity's FXAIX mutual fund, while boasting a very low expense ratio of 0.015%, incurs higher tax costs due to quarterly capital gains distributions, especially in taxable accounts. Over six years, FXAIX returned 149.67%, slightly less than Vanguard's VOO ETF at 150.03%, which benefits from a tax-efficient ETF structure that avoids capital gains distributions. FXAIX is ideal for retirement accounts like IRAs and 401(k)s where tax drag is irrelevant, but taxable investors may prefer VOO despite its higher 0.03% fee for better after-tax returns. Both track the S&P 500, but the choice depends on account type and tax considerations.

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Zero-fee ETF BKLC outperforms Vanguard's S&P 500 ETF with similar large-cap U.S. stock exposure.

Zero-fee ETF BKLC outperforms Vanguard's S&P 500 ETF with similar large-cap U.S. stock exposure.

The BNY Mellon US Large Cap Core Equity ETF (BKLC) offers zero fees while tracking a Solactive index similar to the S&P 500, avoiding licensing costs. Since its 2020 launch, BKLC has slightly outperformed Vanguard's S&P 500 ETF (VOO), delivering a 19...

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