FNILX Vs. FXAIX – Are They Worth It?

Have you started investing in index or mutual funds? Do you want to increase your income funds by diversifying your investment portfolio? Let’s learn more about FNILX vs. FXAIX and which one can give you the best total return. 

Fidelity Investments is one of the most respected portfolio management firms globally, and two of their top-performing funds are FNILX and FXAIX. Both funds are classified under the mutual funds category. 

Today, FNILX and FXAIX are highly sought after by long-term investors and those looking to invest in retirement funds for the foreseeable future.

In this review, we want to take a closer look at both funds. We will provide you with complex numbers, including other vital information. At the end of the review, you’ll be able to decide between FNILX vs. FXAIX.

So let’s get on with it.

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FNILX: Fidelity® ZERO Large Cap Index Fund

FNILX or Fidelity ZERO Large Cap Index Fund is a mutual fund created by Fidelity Investments, which charges zero management fees. This fund tracks and invests in US companies with large market capitalization. At least 80% of investors’ funds acquire common stocks of these large companies classified as the S&P 500. 

S&P 500 is a category created for the largest 500 publicly traded companies in the US stock market.

These companies are highly valued based on the average price of their shares. To give you a clear picture of just how valuable FNILX holdings are, let’s take a look at their top ten holdings.

The stocks in this table represent about 27.13% of the total assets of FNILX.

Apple Inc.5.89%
Microsoft Corp.5.61%
Amazon.com Inc.3.71%
Meta Pltaforms Inc. 2.15%
Alphabet Inc. Class A2.12%
Alphabet Inc. Class C2.03%
Tesla Inc.1.57%
Berkshire Hathaway Class B1.37%
NVIDIA Corp.1.36%
JPMorgan Chase & Co.1.32%

As you can see, the top stocks in FNILX are all top-performing stocks of blue-chip companies. Investing in this fund insulates you from risks to a certain degree since it is highly diversified with a wide market spread across several sectors.

FXAIX: Fidelity® 500 Index Fund

Another fund from the stable of Fidelity Investments is FXAIX or Fidelity 500 Index Fund. This fund also tracks the S&P 500 index, and it covers about 80% of the equity market of these firms. In a nutshell, what this means is that if you were to dissect FXAIX stock for stock, you would find at least 80% of tradable S&P securities in this portfolio. 

FXAIX may be the mutual fund for you if you want to invest in a long-term retirement fund. It covers different sectors of the US economy to better withstand the market volatility of a single or few industries. 

All the top-performing stocks in the US can be found in FXAIX, with the total returns you earn being a combination of dividends and capital changes.

So as you can see, since it was created and launched in May 2011, it has delivered positive results year on year, making it one of Fidelity Investments’ greatest success stories. 

Let’s look at the top ten holdings of FXAIX, which represents about 28.08% of the total assets.

Apple Inc6.07%
Microsoft Corp.5.79%
Amazon.com Inc.3.91%
Meta Platforms Inc.2.21%
Alphabet Inc. Class A2.20%
Alphabet Inc. Class C2.05%
Tesla Inc.1.72%
NVIDIA Corp.1.41%
Berkshire Hathaway Class B1.38%
JPMorgan Chase & Co.1.34%

FNILX Vs. FXAIX: Key Differences

So, what are the major differences between FNILX and FXAIX? Both have certain similarities but differences as well. FNILX is a zero expense fund, but FXAIX is not. So the expense ratio on FNILX is 0.00%, while FXAIX will cost you about 0.02%.

Another significant difference is based on the assets under management, and FXAIX and FNILX are both based on S&P stocks. However, as FXAIX has been around longer, it gives it a more consistent history that evaluators can review and more invested capital. Besides these two differences, both FNILX vs. FXAIX is very similar in other aspects.

FNILX Vs. FXAIX: Composition Differences

In this category, we look at FNILX vs. FXAIX to see how they stack up against each other.

TypeMutual FundMutual Fund
IssuerFidelity InvestmentsFidelity Investments
Net Assets$5.10 billion$379.81 billion
Expense Ratio0.00%0.02%
Management PassivePassive
Minimum investmentN/AN/A

From our table, you can see that both funds are not very different and have powerful results. However, FXAIX has far more consistent results because it has a larger volume of assets and has been in existence for a much more extended period. 

Judging by the data, both assets have the potential for even more growth, which is suitable for long-term investors. There is no minimum investment required for both, and their expense ratio is low or nonexistent (FNILX is zero free expense).

FNILX Vs. FXAIX: Performance Differences

Continuing with our FNILX vs. FXAIX evaluation, let’s review their past performance record.

FNILX Performance Data And Returns

YTD Returns21.86%
1-Month Return0.97%
3-Month Return0.99%
1-Year Return29.76%
3-Year Return16.60%
5-Year ReturnN/A
10-Year ReturnN/A

FXAIX Performance Data And Returns

YTD Returns23.18%
1-Month Return0.69%
3-Month Return1.32%
1-Year Return29.99%
3-Year Return15.98%
5-Year Return16.88%
10-Year Return16.62%


FNILX and FXAIX are funds that investors find very attractive because one is a zero-free fund while the other has every low expense ratio threshold. In the case of FNILX, there is no expense ratio attached to it, making it a 0.00% fund. As for FXAIX, the expense ratio is less than 0.02% which is low, so both funds are quite attractive.

In general terms, when picking assets to invest in the long-term, it pays to do your due diligence because expense ratios accumulated over a very long time tend to take a significant chunk of returns. 

Going back to FNILX vs. FXAIX, the latter had a very low ratio which is good news, but if you don’t want to pay expensive fees, FNILX is your best bet because it is a zero-fee fund.

FNILX Vs. FXAIX: Frequently Asked Questions

Here are some of the frequently asked questions that can guide you to understand FNILX and FXAIX better.

Is FNILX Better Than FXAIX?

It depends on what your investment requirements are. FNILX is a zero-fee fund for small investors, so you get to keep all your earnings. However, if you have a bit of money and won’t mind some expense ratio deductions, FXAIX is a good option. In terms of historical data, FXAIX is more reliable to track because it has been in existence for a very long time. 


Both funds are classified as mutual funds. These funds are popular retirement funds on 401(k) platforms, and Fidelity Investments also created them. 

The only difference is that FXAIX is more circulated than FNILX because it has been around for much longer. Also, they both hold similar S&P 500 stocks and post similar performance results.

Is FNILX A Good Investment?

FNILX is a good investment for many reasons. It has no fees attached to it; that is why it is called a zero-fee fund. If you are looking for an alternative to traditional 401(k) investments, FNILX is a good option. Moreover, the assets in the portfolio are widely diversified across different companies and industries. So if one or a few underperform, your investment will not be greatly impacted. Being a zero-fee fund, you also get to keep all your earnings once it matures.

Is FNILX Similar To The S&P 500?

Not in a technical sense. FNILX does not track the S&P 500 but covers Fidelity’s Large Cap index. Many argue that the difference is mainly academic, not practical.

FNILX Vs. FXAIX – Are They Worth It?

As you seek to diversify your portfolios or start investing your hard-earned money, you need to learn and understand these types of investments. This is already half the battle as you need to equip yourself with the knowledge on how these managed mutual funds will impact your overall financial plans. 

As volatile as these emerging markets are, you need to consider how these investment options will affect your plans down the line as you do not want to lose money, right? This is knowing your risk tolerance for these managed funds.

A sound and effective investment strategy should always include investing in mutual funds that affect your personal finance. Whether you choose FNILX or FXAIX, both can give a dividend to build up your passive income streams. You just need to assess which one can provide the high yield we all want with our investments. So evaluate your personal finance now and make the right choice to start investing for your future.

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