FZROX vs SPY
Fidelity ZERO Total Market Index Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, FZROX or SPY?
Nearly the same fund. FZROX costs less.
FZROX has a lower expense ratio. FZROX led over 1Y, SPY over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95. FZROX is less concentrated, with 34.0% of the fund in its ten largest positions against 38.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FZROX | SPY |
|---|---|---|
| Expense Ratio | 0.00%Best | 0.09% |
| AUM | $3.1B | $814.4B |
| Dividend Yield | 0.93% | 1.01% |
| Holdings | 2,689 | 505 |
| YTD Price Return | +13.71%Best | +12.74% |
| 1Y Price Return | +18.92%Best | +18.65% |
| 3Y Price Return (annualized) | +19.69% | +19.70%Best |
| 5Y Price Return (annualized) | +10.65% | +11.30%Best |
| Volatility (annualized) | 15.4%Best | 15.8% |
| Max Drawdown | -26.9% | -25.4%Best |
| $10,000 over 5 years | $16,587 | $17,080Best |
| Top 10 Weight | 34.0%Best | 38.0% |
| Fund Family | Fidelity Investments (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Aug 2, 2018 | Jan 22, 1993 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for FZROX. Both funds are measured the same way, so the comparison holds. FZROX yields 0.93% and SPY 1.01% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2021 to Sep 4, 2026 (5 years).
FZROX vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
FZROX vs SPY Performance
Fidelity ZERO Total Market Index Fund (FZROX) is a mutual fund from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FZROX returned +18.92% while SPY returned +18.65%. Year to date, FZROX is up 13.71% versus a gain of 12.74% for SPY.
Over three years, FZROX compounded at +19.69% per year against +19.70% for SPY; over five years the annualized figures are +10.65% and +11.30% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 15.4% for FZROX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -26.9% for FZROX and -25.4% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FZROX charges 0.00% per year while SPY charges 0.09%. On a $10,000 position that is $0 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, FZROX currently yields 0.93% against 1.01% for SPY.
Structure and taxes
FZROX is a mutual fund and SPY is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
87.3% of FZROX's money is in holdings SPY also owns. 98.4% of SPY's money is in holdings FZROX also owns.
Most of SPY is already inside FZROX. Owning both mostly buys the same companies twice.
The two holdings books were reported 96 days apart, FZROX as of Apr 30, 2026 and SPY as of Aug 4, 2026, so some of the difference between them is the time between the two reports rather than the funds.
485 positions in common, counted across the 2,672 positions we hold weights for in FZROX and 503 in SPY, against full books of 2,689 and 505.
What only one of them owns
Our book lists 7 positions for SPY that do not appear in our book for FZROX (1.0% of the fund), and 667 for FZROX that do not appear in SPY (10.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FZROX | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 6.94% | 7.71% | 0.77% |
| AAPLApple Inc Ord | 5.70% | 6.83% | 1.13% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.33% | 5.50% | 1.17% |
| AMZNAmazon.Com Inc | 3.71% | 4.08% | 0.37% |
| GOOGL Alphabet Inc. Class A | 3.21% | 3.33% | 0.12% |
| AVGOBroadcom Inc | 2.83% | 2.97% | 0.14% |
| GOOGAlphabet, Inc., Class C | 2.55% | 2.67% | 0.12% |
| METAMeta Platform Inc | 1.92% | 1.94% | 0.02% |
| TSLATesla Motors Inc | 1.54% | 1.38% | 0.16% |
| BRK.BBerkshire Hathaway, Inc., Class B | 1.24% | 1.42% | 0.18% |
98.4% of SPY is already inside FZROX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FZROX or SPY?
FZROX has an expense ratio of 0.00% while SPY charges 0.09%. FZROX is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, FZROX or SPY?
Over the past year FZROX returned +18.92% vs +18.65% for SPY, so FZROX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FZROX or SPY?
SPY has been the more volatile fund at 15.8% annualized versus 15.4% for FZROX. Worst drawdown: FZROX -26.9% vs SPY -25.4%.
Should I hold both FZROX and SPY?
FZROX and SPY have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FZROX and SPY?
98.4% of SPY's money is in holdings FZROX also owns. 98.4% of SPY's is in holdings FZROX also owns. They hold 485 positions in common, counted across the 2,672 positions we hold weights for in FZROX and 503 in SPY.
Which pays a higher dividend, FZROX or SPY?
FZROX yields 0.93% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
Is it better to hold FZROX or SPY in a taxable account?
SPY is an ETF and FZROX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is SPY better than FZROX?
FZROX has a lower expense ratio. FZROX led over 1Y, SPY over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95. FZROX is less concentrated, with 34.0% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.