We know that FNILX and PREIX are similar because they follow the S&P 500 index funds. But what else is there under the hood? Will investors get the same return if they just pick one? Or do one fund have a slight advantage over the other?
Let’s take a closer look at the Fidelity ZERO Large Cap Index Fund and the T. Rowe Price Equity Index 500 Fund to see which fund provides more benefits to investors.
FNILX vs PREIX: What Are the Differences?
- FNILX is a mutual fund from Fidelity. PREIX is a mutual fund from T. Rowe Price.
- FNILX is part of Fidelity’s Zero Expense Index Funds. Therefore, it has an expense ratio of 0%. Unfortunately for PREIX, it can’t beat that with 0.18%.
- PREIX’s total net assets is 2x of FNILX’s total net assets (10.59 billion and 5.45 billion, respectively).
- The T. Rowe Price 500 Index Fund pays dividends every quarter, while the Fidelity Large Cap Index Fund pays dividends annually (every December).
FNILX vs PREIX: How Are They Similar?
- Both mutual funds track the performance of the S&P 500 Index, even though FNILX doesn’t explicitly say “500 Index Fund” in its name.
FNILX vs PREIX: Portfolio Composition
Both of these mutual funds are made up of large-cap stocks, so the funds will have a lot of overlap in terms of their holdings.
FNILX Top 10 Holdings
| COMPANY | SYMBOL | TOTAL NET ASSETS |
|---|---|---|
| Apple Inc. | AAPL | 6.70% |
| Microsoft Corp. | MSFT | 6.08% |
| Amazon Inc. | AMZN | 3.49% |
| Alphabet Inc. Cl A | GOOGL | 2.10% |
| Tesla Inc. | TSLA | 2.06% |
| Alphabet Inc. Cl C | GOOG | 1.96% |
| Meta Platforms Inc. | FB | 1.93% |
| NVIDIA Corp. | NVDA | 1.76% |
| Berkshire Hathaway Inc. Cl B | BRK.B | 1.33% |
| UnitedHealth Group Inc. | UNH | 1.14% |
PREIX Top 10 Holdings
| COMPANY | SYMBOL | TOTAL NET ASSETS |
|---|---|---|
| Apple Inc. | AAPL | 6.85% |
| Microsoft Corp. | MSFT | 6.25% |
| Amazon Inc. | AMZN | 3.60% |
| Alphabet Inc. Cl A | GOOGL | 2.15% |
| Tesla Inc. | TSLA | 2.13% |
| Alphabet Inc. Cl C | GOOG | 2.00% |
| Meta Platforms Inc. | FB | 1.97% |
| NVIDIA Corp. | NVDA | 1.82% |
| Berkshire Hathaway Inc. Cl B | BRK.B | 1.35% |
| UnitedHealth Group Inc. | UNH | 1.17% |
As of 12/31/2021
FNILX vs PREIX: Annual Return
The following table shows how FNILX and PREIX have done over the last 3 years:
| Funds | Fidelity® ZERO Large Cap Index Fund | T. Rowe Price Equity Index 500 Fund |
|---|---|---|
| 1 month | -5.57% | -5.19% |
| 3 months | -2.78% | -1.64% |
| 6 months | +2.09% | +3.36% |
| 1 year | +20.97% | +23.10% |
| 3 years | +20.88% | +20.50% |
| 5 years | – | +16.56% |
As you can see, they have performed about the same during this three-year period and yielded about 20% in return.
Which is Better, FNILX or PREIX?
One key difference between these two funds is that the T. Rowe Price Equity Index 500 fund charges 0.18% in expenses, which is high compared to the industry average. The Fidelity ZERO Large Cap Index Fund, on the other hand, charges 0%, which means it’s basically free to invest in FNILX.
With PREIX, there is also a minimum investment of $2,500, whereas there is no minimum amount for FNILX.
One more factor that makes FNILX better than PREIX is the turnover rate. The lower the amount, the better. Luckily, the turnover rate of FNILX is only 5%. Meanwhile, the turnover rate of PREIX is 13.6%.
So there is a clear winner here. By going with Fidelity’s FNILX, you pay less in fees and still get the same exposure to the largest 500 companies on the U.S market.
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