Over the last decade, actively managed funds have underperformed the S&P 500 index about 90% of the time, according to SPIVA research. That data has pushed millions of investors toward a simpler approach: just buy the index.
S&P 500 mutual funds make that easy. You get exposure to 500 of the largest U.S. companies in a single fund, at a fraction of a percent in annual fees. The hard part is choosing between the options available.
Here are the best mutual funds tracking the S&P 500 in 2026, compared by what matters most.
Top S&P 500 Mutual Funds
1. Fidelity 500 Index Fund (FXAIX)
Fidelity FXAIX is the largest S&P 500 mutual fund by assets and among the cheapest you can buy. Its expense ratio is 0.015% per year, which works out to $1.50 on a $10,000 investment annually. There is no minimum investment requirement, making it one of the most accessible options for new investors.
The fund closely tracks the S&P 500 and has consistently kept its tracking error extremely low. It is available commission-free through Fidelity accounts.
- Expense ratio: 0.015%
- Minimum investment: None
- Available at: Fidelity
2. Vanguard 500 Index Fund Admiral Shares (VFIAX)
VFIAX is Vanguard's flagship S&P 500 mutual fund and one of the most well-known index funds in existence. It charges 0.04% per year. Performance closely mirrors the S&P 500 index, as expected from a passively managed fund. If you are deciding between VFIAX and its ETF equivalent, the VFIAX vs VOO comparison explains the key differences.
The main drawback is the $3,000 minimum investment. That can be a barrier for investors just getting started. Once you meet the minimum, you can add smaller amounts going forward.
- Expense ratio: 0.04%
- Minimum investment: $3,000
- Available at: Vanguard (and some third-party brokers)
3. Schwab S&P 500 Index Fund (SWPPX)
SWPPX is the Schwab S&P 500 fund, with a very competitive expense ratio of 0.02% per year. There is no minimum investment, putting it in the same accessible tier as FXAIX. Performance tracks the index closely.
If you have a Schwab account, SWPPX is the natural choice for S&P 500 exposure in mutual fund form. It is commission-free through Schwab.
- Expense ratio: 0.02%
- Minimum investment: None
- Available at: Schwab
4. Fidelity 500 Index Fund (Standard)
Fidelity also offers a standard share class version of its S&P 500 fund for those accessing it through certain workplace plans. The expense ratio and performance characteristics are nearly identical to FXAIX. In most cases, FXAIX is the better choice for direct investors.
5. T. Rowe Price Equity Index 500 Fund (PREIX)
PREIX tracks the S&P 500 with an expense ratio of around 0.20%, which is higher than the other funds on this list. It has a $2,500 minimum investment. For most investors, FXAIX or SWPPX offer better value. PREIX may be relevant if you have access to it through a specific workplace retirement plan.
- Expense ratio: ~0.20%
- Minimum investment: $2,500
- Available at: T. Rowe Price and some 401(k) plans
How to Compare S&P 500 Mutual Funds
Expense Ratio
This is the most important number. Expense ratios compound over time. A fund charging 0.20% vs one charging 0.015% may not sound like a big difference, but on a $100,000 portfolio over 30 years, that gap can add up to tens of thousands of dollars.
Minimum Investment
If you are starting with a small amount, stick to funds with no minimum, like FXAIX or SWPPX. Once you have more invested, minimums become less of a concern.
Tracking Error
A good S&P 500 index fund should closely match the index return, minus fees. All five funds above have low tracking error. Larger, more established funds tend to be better at this.
Platform Access
Some funds are only available at specific brokers. VFIAX is easiest to access through Vanguard directly. FXAIX at Fidelity. SWPPX at Schwab. If you prefer a single platform for all your investing, pick the fund that matches your broker. For a side-by-side broker comparison, see Fidelity vs Charles Schwab.
Investing in S&P 500 Mutual Funds Through a Brokerage
You can hold S&P 500 mutual funds in a taxable brokerage account, a traditional or Roth IRA, or a 401(k). The tax treatment of the account matters more than the fund itself in many cases. If you are also weighing mutual funds against ETFs as a format, a comparison of index funds vs ETFs explains the structural differences in cost, tax efficiency, and trading.
If you prefer the flexibility of ETFs alongside mutual funds, or want to start with less than typical mutual fund minimums, consider Robinhood. Robinhood offers commission-free ETF trading and fractional shares, so you can get S&P 500 exposure through ETFs like VOO starting with as little as $1. Robinhood also offers IRA accounts with a 1% match on contributions, which can accelerate your savings.
Past performance is not a guarantee of future results. All investing carries risk, including the possible loss of principal.
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Buyer's Guide: Which S&P 500 Mutual Fund Should You Choose?
For Fidelity customers: FXAIX is the obvious pick. No minimum, the lowest expense ratio on this list, and tight index tracking.
For Schwab customers: SWPPX at 0.02% is excellent. No minimum and commission-free through Schwab.
For Vanguard loyalists: VFIAX is the gold standard, though the $3,000 minimum is a drawback compared to the Fidelity and Schwab options.
For 401(k) investors: You are limited to what your plan offers. Check the expense ratio of any S&P 500 fund in your plan. If it is above 0.10%, it may be worth asking your HR department about lower-cost alternatives.
For new investors with less than $1,000: FXAIX or SWPPX, both of which have no minimums, are your best bets.
All five funds track the same index and will deliver essentially the same market returns over time. The differences in expense ratio and minimums are what separate them. Choose the lowest-cost option available through your preferred brokerage.
Frequently Asked Questions
What expense ratio should I look for in an S&P 500 mutual fund?
Aim for 0.10% or below. The best options, like FXAIX (0.015%) and SWPPX (0.02%), charge far less. A high expense ratio, like 0.50% or more, can significantly reduce your returns over time, especially as your balance grows.
Can I buy an S&P 500 mutual fund in my IRA?
Yes. S&P 500 index funds are one of the most common holdings inside traditional and Roth IRAs. Just make sure the fund is available through your IRA provider. Fidelity offers FXAIX inside its IRA accounts. Schwab offers SWPPX inside its IRAs.
Is there a difference in performance between FXAIX, VFIAX, and SWPPX?
All three track the S&P 500, so long-term returns are nearly identical. The small differences in performance come down to expense ratios and tracking error. FXAIX has the lowest expense ratio of the three, which gives it a slight edge in net returns over time.
How often should I add money to an S&P 500 mutual fund?
Many investors use dollar-cost averaging, meaning they contribute a fixed amount each month regardless of market conditions. This approach reduces the risk of investing a large sum right before a market drop. Most fund providers allow automatic recurring investments, making this strategy easy to maintain.
