Opening: What You Need to Do
To invest in the S&P 500 through Fidelity, you open a brokerage account, fund it with money, and then buy an S&P 500 index fund or exchange-traded fund (ETF). Fidelity offers several versions of these funds — some with no minimum investment, some with no trading fees — so you can start with as little as one share. The whole process takes about 15 minutes online, and your money can be invested the same day you fund the account.
The S&P 500 is a collection of 500 large U.S. companies. When you buy an S&P 500 fund, you own a tiny piece of all 500 at once, which spreads your risk across many businesses instead of betting on one stock. Fidelity's versions track this same list, so whichever fund you choose, you are buying roughly the same thing.
Key Takeaways
- You need a Fidelity brokerage account (not a retirement account) to buy S&P 500 funds, and you can open one online in minutes with just your Social Security number and a valid ID.
- Fidelity offers S&P 500 index funds and ETFs with no minimum investment and no trading fees, so you can start with $1 if you want.
- After you fund your account by linking a bank account or transferring money, you search for the fund by its ticker symbol (FSKAX, FNILX, or VOO are common choices) and place a buy order.
- Your order settles the next business day, meaning the shares appear in your account and you own them, though you cannot sell them until settlement is complete.
- You can set up automatic monthly investments so money moves from your bank to Fidelity and buys the fund on a schedule you choose.
Opening a Fidelity Brokerage Account
Start by going to Fidelity's website and clicking "Open an Account." Choose "Brokerage Account" — not a retirement account like an IRA, which has different rules. You will enter your name, address, Social Security number, date of birth, and employment information. Fidelity will ask whether you want a taxable account (the standard choice for most people) or a margin account (which lets you borrow money to invest, and is not recommended for beginners).
The process takes about 10 minutes. Fidelity will ask you to verify your identity, usually by answering security questions or uploading a photo of your ID. Once approved — which usually happens within minutes — you can log in and see your empty account dashboard.
You do not need to fund the account when ready. Many people open it first, explore the interface, and add money later. But you cannot buy anything until money is in the account.
Funding Your Account
After your account is open, click "Deposit Funds" or "Add Money" in your account dashboard. Fidelity will ask whether you want to link a bank account for electronic transfer or mail a check. Linking a bank account is faster and more common. You will provide your bank's routing number and your account number, which you can find on a check or in your bank's website.
Fidelity will send two small test deposits to your bank account (usually $0.01 and $0.02) to verify you own the account. Once you confirm those amounts in Fidelity, the link is active and you can transfer money when ready. Most transfers settle within one business day, though some banks take longer.
Start with whatever amount feels comfortable — $100, $500, $1,000, or more. There is no minimum. Once the money lands in your Fidelity account, it sits as cash and is ready to invest.
Choosing Which S&P 500 Fund to Buy
Fidelity offers three main S&P 500 index funds and ETFs. All three track the same 500 companies, so the differences are small and mostly about fees and how you buy them.
| Fund Name | Ticker | Minimum Investment | Fee (Expense Ratio) | Type |
|---|---|---|---|---|
| Fidelity S&P 500 Index Fund | FSKAX | $0 (buy 1 share) | 0.015% | Mutual fund |
| Fidelity ZERO Large Cap Index Fund | FNILX | $0 (buy 1 share) | 0.00% | Mutual fund |
| Fidelity S&P 500 ETF | VOO | ~$400 (price of one share) | 0.03% | Exchange-traded fund |
For most beginners, FNILX (the ZERO fund) is the simplest choice because it has no fee at all and no minimum. You can buy one share for whatever the price is that day. FSKAX is nearly identical and costs almost nothing. VOO is an ETF, which works slightly differently — you buy whole shares at the market price, so if one share costs $450, you need at least $450 to buy it — but it is also a solid choice and many investors prefer ETFs.
All three will give you the same result: ownership in the S&P 500. Pick one and move forward. You can always switch later if you change your mind.
Placing Your First Buy Order
Log into your Fidelity account and look for "Trade" or "Buy/Sell" in the main menu. Click it and you will see a search box. Type the ticker symbol of the fund you chose (FNILX, FSKAX, or VOO). Fidelity will show you the fund and its current price.
Enter the dollar amount you want to invest or the number of shares you want to buy. If you choose a dollar amount, Fidelity will calculate how many shares that buys. For example, if FNILX costs $100 per share and you enter $500, you will buy 5 shares. If you choose a number of shares, Fidelity will show you the total cost.
Select "Buy" and review the order. Make sure the fund name, amount, and price are correct. Then click "Submit" or "Place Order." Your order is now in the system. If you place it during market hours (9:30 a.m. to 4 p.m. Eastern time on a weekday), it will execute that day at the closing price. If you place it after hours or on a weekend, it will execute the next market open.
The next business day, the shares will settle in your account. You will see them listed under "Positions" or "Holdings" with the number of shares and their current value. You now own a piece of the S&P 500.
Setting Up Automatic Monthly Investments
One of the most powerful ways to invest is to add money on a regular schedule. Fidelity lets you set up automatic transfers from your bank account to your brokerage account, and then automatically buy your chosen fund on a date you pick each month.
In your account, look for "Automatic Investments" or "Recurring Transactions." You will tell Fidelity how much to transfer each month, which fund to buy, and what day of the month to do it. For example, you could set it to transfer $200 from your bank on the 1st of each month and buy FNILX with that money.
This approach removes the need to remember to invest and takes advantage of dollar-cost averaging — buying the same fund at different prices over time, which smooths out the ups and downs of the market. Many long-term investors find this the easiest way to build wealth without thinking about it.
What Happens After You Buy
Once your shares settle, you own them. You do not need to do anything. The fund will hold all 500 S&P 500 companies for you, and as those companies grow or shrink, your fund's value will change. You will see the dollar amount go up and down depending on the market, but you own the shares until you decide to sell.
Fidelity will send you statements each month showing your holdings, their value, and any dividends paid. Many S&P 500 funds pay dividends — small cash payments from the companies in the fund — a few times per year. Fidelity can automatically reinvest those dividends back into the fund, buying more shares with the money, or you can take the cash. The default is usually to reinvest, which is fine for most people.
You can log in anytime to see your balance, add more money, or change your automatic investment settings. There are no ongoing fees beyond the tiny expense ratio (0.00% for FNILX, 0.015% for FSKAX), which Fidelity deducts automatically.
Frequently Asked Questions
Can I buy S&P 500 funds in a retirement account instead of a regular brokerage account?
Yes. If you have a Fidelity IRA or 401(k), you can buy the same S&P 500 funds inside it. The process is identical, but the money grows tax-deferred (or tax-free, depending on the account type). Many people invest in S&P 500 funds through retirement accounts because the tax benefits are powerful over decades.
What is the difference between a mutual fund and an ETF?
Both hold the same investments, but they trade differently. A mutual fund (like FSKAX or FNILX) trades once per day at the closing price, and you can buy any dollar amount. An ETF (like VOO) trades throughout the day like a stock, and you buy whole shares. For S&P 500 investing, the difference is small. Pick whichever feels simpler to you.
Do I have to buy the whole S&P 500, or can I pick individual stocks instead?
You can do either. Buying an S&P 500 fund gives you all 500 companies at once, which is lower risk because you are diversified. Buying individual stocks means you pick which companies to own, which can earn more or lose more depending on how those companies perform. Most beginners start with the S&P 500 fund and add individual stocks later if they want.
What if I need the money back — can I sell my shares?
Yes, anytime during market hours. Log into your account, find your S&P 500 fund in your holdings, and click "Sell." Enter how many shares you want to sell, review the order, and submit it. The order executes at that day's closing price, and the money settles in your account the next business day. You can then transfer it back to your bank.
How much should I invest to start?
There is no right answer. Some people start with $100, others with $1,000 or more. The key is to start with money you will not need for at least five years, because the stock market goes up and down in the short term. If you are saving for something you need next year, a savings account is safer. If you are saving for retirement or a long-term goal, the S&P 500 is a solid choice at any starting amount.