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Buying VOO on Fidelity

Fidelity Active Trader Pro interface showing VOO ETF details

Buying VOO on Fidelity means purchasing shares of the Vanguard S&P 500 ETF (VOO) through Fidelity's brokerage platform, which offers commission-free trading for this popular index fund. The process is straightforward, Active Trader Pro.

How Buying VOO on Fidelity Works

VOO tracks the performance of the S&P 500 index, one of the most widely followed benchmarks for U.S. large-cap stocks. Fidelity allows investors to buy VOO shares with no commissions, making it an attractive option for cost-conscious investors. The minimum investment is typically one share, though fractional shares may also be available depending on your account type.

Main Types of Accounts for Buying VOO

You can buy VOO on Fidelity using several types of accounts:

Step-by-Step Process for Buying VOO

To buy VOO on Fidelity, follow these steps:

  1. Log In: Access your Fidelity account via the website or mobile app.
  2. Search for VOO: Enter "Vanguard S&P 500 ETF" or "VOO" in the search bar.
  3. Select VOO: Click on the VOO listing to view details, including price, expense ratio (0.03%), and performance history.
  4. Choose Trade Type: Select "Buy" and choose between market, limit, or other order types.
  5. Enter Quantity: Specify the number of shares or dollars you want to invest.
  6. Review and Submit: Confirm the order details and submit the trade.

Common Mistakes When Buying VOO

Investors often confuse VOO with similar ETFs like SPY (SPDR S&P 500 ETF Trust) or IVV (iShares Core S&P 500 ETF). While all three track the S&P 500, they have different expense ratios and slight variations in tracking error. VOO is known for its low expense ratio of 0.03%, making it slightly cheaper than SPY (0.09%) and IVV (0.03%).

Another mistake is assuming that buying VOO on Fidelity is the same as buying it on Vanguard. While both platforms offer commission-free trading for VOO, Fidelity may have different account features or tools compared to Vanguard's platform. For example, Fidelity provides research tools and educational resources that Vanguard does not.

Why Investors Choose VOO

VOO is a popular choice for passive investors due to its low expense ratio, broad market exposure, and strong historical performance. Since its inception in 2010, VOO has delivered returns closely aligned with the S&P 500 index. As of 2023, VOO holds over $300 billion in assets under management, making it one of the largest ETFs in the world.

Fidelity's platform enhances the appeal of VOO by offering zero-commission trading, real-time market data, and advanced charting tools. This combination makes it easier for investors to monitor their positions and make informed decisions.

Alternative Options

For investors who prefer fractional shares, Fidelity supports fractional trading for VOO, allowing you to invest any dollar amount rather than being limited to whole shares.

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