Fxaix versus jlgmx

When comparing Fidelity 500 Index Fund (FXAIX) and JPMorgan Equity Index Fund (JLGMX), there are several factors to consider:

1. Objective and Investment Strategy:

• FXAIX is an index fund that seeks to provide investment results that correspond to the total performance of common stocks included in the S&P 500 Index.
• JLGMX aims to track the aggregate price and dividend performance of securities in the S&P 500 Index and has a net expense ratio of 0.45%, indicating a relatively low cost for investors.

2. Expense Ratio and Fees:

• FXAIX has an expense ratio of 0.015%, which is significantly lower than the average expense ratio of 1.63% for the Large Blend category as of August 15, 2024.
• JLGMX has a higher expense ratio of 0.45%, which is still below the category average but above FXAIX's expense ratio.

3. Performance and Returns:

• FXAIX has shown a total return of 22.15% over the past year, outperforming the S&P 500's 9.58% return.
• JLGMX has returned 9.66% over the past year, which is lower than FXAIX's return but still within the range of the Large Blend category average.

4. Portfolio Composition:

• FXAIX holds a diversified portfolio of large-cap stocks included in the S&P 500 Index, with a recent focus on technology companies.
• JLGMX is fully replicating the S&P 500, with a slight quality tilt due to profitability screens.

5. Risk and Volatility:

• FXAIX has a moderate risk profile, with a beta of 1.00 and a standard deviation of 0.99.
• JLGMX has a higher risk profile, with a beta of 1.02 and a standard deviation of 1.54.

6. Parent Organization and Reputation:

• FXAIX is part of Fidelity Investments, a well-established financial services company with a strong reputation.
• JLGMX is part of JPMorgan Asset Management, which also has a solid reputation in the financial industry.

Conclusion: Both FXAIX and JLGMX are well-regarded funds that track the performance of the S&P 500 Index. FXAIX has a lower expense ratio, which is advantageous for cost-conscious investors, and has outperformed the S&P 500 in terms of total return. JLGMX has a higher expense ratio but may offer a slightly different investment experience due to its profitability screens. The choice between these funds depends on an investor's priorities, with FXAIX being more suitable for those seeking low costs and strong performance, while JLGMX may appeal to those looking for a fund with a slightly different approach to replicating the S&P 500.