SWPPX vs VOO: Which Fund Is a Better Buy?

Someone asks:

I’m planning to put 2k into SWPPX for my Roth IRA, but is there a better choice in your opinion? I heard VOO from Vanguard is also good. I’m looking for stable long-term returns.

SWPPX vs VOO: Overview

FundsSchwab® S&P 500 Index FundVanguard S&P 500 ETF
Price64.00 (NAV)392.83
3-year total return+18.23%+18.21%
3-year standard deviation17.72%17.73%
Morningstar rating
Min. initial investment0.00 USD
Net expense ratio0.02%0.03%
Total net assets66.57bn USD277.45bn USD
Morningstar categoryLarge BlendLarge Blend

Community Answers:

Josh W:

SWPPX is Schwab’s S&P 500 mutual fund with a 0.02% expense ratio. I have about 10% of my overall portfolio between this and VOO. I believe it’s a great buy, hold and continue to buy for many years.

Charles M:

Well, it’s easy to say SWPPX is a good buy because of its annualized return rate over the past 3-5 years, without considering the fund volatility over the past half-decade.

SWPPX lost over 50% in its most recent bear market, with underperformed comparable funds by 5.18%, which could be a possible wrong choice in a sliding market environment.

Ziad J:

I have Vanguard 500 Index VFINX, and they perform pretty much the same. It isn’t terrible to have some S&P Index 500, especially if you are learning about funds and not ready to invest in managed funds or less all-encompassing indexes.

There might be a slight difference in expenses, but SWPPX and VOO are the same. It depends on which brokerage you use. They both are designed to approximate the index as best as possible.

Ray P:

SWPPX is a Schwab mutual fund. If you have a Schwab account, the minimum investment is $1. If you don’t have a Schwab account, it’ll cost you (depending on your brokerage firm).

Having said that, VOO (Vanguard 500 ETF) serves the same purpose. Fee: 0.03% net expense ratio. VOO has a quarterly dividend payout. SWPPX has an annual dividend payout.

The only good thing with mutual funds, in general, is that you can automate investing. Automatically invest X amount of dollars towards the fund every two weeks, every month, whatever. It takes the “emotions” out of it and helps you DCA (Dollar Cost Average) without even thinking about it. You can’t do this with ETFs for most brokerages. I believe M1 Finance allows it, though.

What’s the Fidelity Equivalent of SWPPX and VOO?

FXAIX is the Fidelity equivalent of SWPPX and VOO.

It tracks the S&P 500 Index and has an expense ratio of 0.02%.

  • 3-year total return: +18.23%
  • Total net assets: 370.73 billion
  • Min. initial investment: $0.00

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Hi! I'm Diego, 38, and I currently reside in New York. I work as a financial analyst. I primarily focus on initiatives involving research and data analysis.

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