FXAIX vs IVV: Which Large Cap Fund Will Outperform in 2023?
When you want to invest, you may need to look at different alternatives and different options. Almost all sectors around the world have their own stock exchanges and investment opportunities. Different investment options come to the fore, such as large-capitalized funds, investors investing in small and newly established capital, investors investing in areas such as the food sector and the technology sector.
When you want to invest, you may need to look at different alternatives and different options. Almost all sectors around the world have their own stock exchanges and investment opportunities. Different investment options come to the fore, such as large-capitalized funds, investors investing in small and newly established capital, investors investing in areas such as the food sector and the technology sector. When it comes to investors who want to invest in large-cap funds, they have a difficult choice to make between the Fidelity 500 Index Fund (FXAIX) and the iShares Core S&P 500 ETF (IVV). Realizing that much of the information on the internet is advertising and sponsorship, we wanted to create a guide with authentic and real information for you. In this content, we compare the two funds. This will allow you to determine which one will perform better in 2023.
FXAIX vs IVV Benchmark
Both FXAIX and IVV have a similar investment objective of tracking the S&P 500 Index. FXAIX has $350 billion in assets under management (AUM) and an expense ratio of 0.015%, while IVV has $315 billion in AUM and an expense ratio of 0.03%. FXAIX’s lower expense ratio may seem like an attractive feature. Often expenses can work in the opposite direction to performance. Therefore, one should not compare performance based on expenses alone.
Comparison of Two Funds
Analyzing past performance, we see that both funds have generated strong returns over the last few years. From 2018 to 2022, FXAIX returned an average of 15.87% annually, while IVV returned an average of 15.89%. While both funds have similar returns, IVV has been less volatile than FXAIX. For the most part, investors see this as a more attractive option for risk-averse individuals.
When it comes to assets, both funds have significant investments in the technology and financial sectors. However, FXAIX has a higher concentration of technology assets, while IVV has a higher concentration of financial assets. This difference in their holdings is not significant enough to affect investors one way or the other.
Remuneration and Management Options
Regarding management and fees, both funds are managed by reputable institutions with experienced management teams. However, FXAIX’s lower expense ratio may be an advantage for investors looking to minimize fees.
Overall, while both FXAIX and IVV have similar investment objectives and holdings, IVV’s lower volatility and comparable returns may make it a more attractive option for investors in 2023.
However, FXAIX’s lower expense ratio may be more attractive to cost-conscious investors. In conclusion, investors should consider their risk tolerance, investment objectives and fees when choosing a fund.
Which One Should You Buy?
Unfortunately, it is not possible to make a clear comment on this issue. It is important to remember that both funds have a very serious target audience and investors who show interest. You can choose to make a purchase accordingly by determining which one is more investable for you. In this way, it will be possible to invest in the fund you want in a short time.
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