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There is no single best S&P 500 index fund for every investor. For a long-term ETF investor, SPYM has the lowest stated expense ratio among the mainstream exact S&P 500 ETFs covered here, while VOO and IVV are equally strong default choices. For mutual-fund investors, FXAIX is the lowest-cost retail option in this comparison, and SWPPX is a nearly identical choice for Schwab customers. SPY is primarily the choice for active trading and options, not ordinary buy-and-hold investing.
This comparison is for U.S. investors considering U.S.-domiciled funds. It was updated August 10, 2026; expense ratios, assets, holdings, prices, performance, and brokerage policies can change.
Quick picks: the best S&P 500 funds by use case
| Use case | Fund | Why it stands out | Main qualification |
|---|---|---|---|
| Lowest-cost S&P 500 ETF | SPYM | 0.02% gross expense ratio | Formerly SPLG; ticker changed October 31, 2025 |
| Best default ETF | VOO or IVV | 0.03% expense ratio, enormous scale, long records, and strong liquidity | The difference between them is usually immaterial for a buy-and-hold investor |
| Lowest-cost retail mutual fund | FXAIX | 0.015% expense ratio and no minimum investment at Fidelity | Availability and transaction terms may differ at other brokerages |
| Best Schwab mutual fund | SWPPX | 0.020% expense ratio and no minimum initial investment | Saving 0.005 percentage points by switching to FXAIX is rarely meaningful |
| Best for active trading and options | SPY | Deep trading liquidity and one of the largest options ecosystems | Its 0.0945% expense ratio is high for long-term ownership |
| Vanguard mutual-fund option | VFIAX | Established Vanguard S&P 500 mutual fund | 0.04% expense ratio and a $3,000 minimum investment |
Simple answer: If you already own one low-cost exact S&P 500 fund, you usually do not need to replace it or add another. VOO, IVV, SPYM, SPY, FXAIX, SWPPX, and VFIAX provide largely overlapping exposure when used for the same portfolio allocation.
What is an S&P 500 index fund?
The S&P 500 is an index of approximately 500 leading U.S. companies. It is float-adjusted and market-capitalization weighted, meaning companies with larger publicly traded market values have a greater effect on the index. S&P Dow Jones Indices says the index covers approximately 80% of available U.S. equity market capitalization.
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An S&P 500 index fund is an investment vehicle that attempts to track the index before fees and other implementation effects. The index itself is not something most investors purchase directly; the fund provides the investable exposure.
The index is called the S&P 500, but a fund can report slightly more than 500 holdings. Some companies have multiple share classes, and a fund may hold more than one class. For example, SWPPX reported 503 holdings as of June 30, 2026, while SPYM reported 505 holdings as of August 6, 2026.
What the S&P 500 does—and does not—include
An S&P 500 fund is broadly diversified within U.S. large-cap stocks. It is not a total-market or global fund. It generally excludes:
- Most U.S. small-cap and mid-cap companies;
- Companies headquartered outside the United States;
- Bonds, cash, and other major asset classes.
It is also not equal-weighted. The largest companies can represent a substantial portion of the portfolio. As of August 6, 2026, Nvidia was SPYM’s largest holding at 8.00%, and its 10 largest listed holdings represented approximately 38% of the fund when Alphabet’s two share classes were counted separately. Concentration can change as market values change.
That makes an S&P 500 fund a powerful core U.S. stock holding, but not automatically a complete portfolio. Investors seeking broader diversification may instead consider a total U.S. stock-market fund, a global stock fund, a balanced fund, or a target-date fund, depending on their goals and risk tolerance.
Comparison of leading exact S&P 500 funds
The following figures are reported by the fund sponsors and are current or most recently reported as of the dates shown. An expense ratio is the percentage of fund assets used for ordinary operating expenses; it is not usually charged as a separate bill.
| Fund | Wrapper | Sponsor | Expense ratio | Minimum | Inception | Distribution |
|---|---|---|---|---|---|---|
| SPYM | ETF | State Street | 0.02% gross | No fund minimum; broker rules apply | November 8, 2005 | Quarterly |
| VOO | ETF | Vanguard | 0.03% | No fund minimum; broker rules apply | September 7, 2010 | Quarterly |
| IVV | ETF | BlackRock/iShares | 0.03% | No fund minimum; broker rules apply | May 15, 2000 | Quarterly |
| FXAIX | Mutual fund | Fidelity | 0.015% gross and net | $0 at Fidelity | February 17, 1988 | Quarterly |
| SWPPX | Mutual fund | Schwab | 0.020% | No minimum | May 19, 1997 | Quarterly |
| VFIAX | Mutual fund | Vanguard | 0.04% | $3,000 | November 13, 2000 share class | Quarterly |
| SPY | ETF/UIT | State Street | 0.0945% gross | No fund minimum; broker rules apply | January 22, 1993 | Quarterly |
Verify the current prospectus and sponsor page before investing. “Gross” and “net” expense ratios can differ when a fee waiver or reimbursement applies, and expense ratios can change.
The best S&P 500 fund for each type of investor
SPYM: best on stated ETF cost
SPYM is State Street’s SPDR Portfolio S&P 500 ETF. It charges a 0.02% gross expense ratio and tracks the S&P 500. State Street reported a net asset value of $90.47 and approximately $167.5 billion in assets as of August 6, 2026.
SPYM can be a good choice for a long-term ETF investor who wants the lowest stated fee among the mainstream exact S&P 500 ETFs in this comparison. Its comparatively low share price may also be convenient if a brokerage does not offer fractional ETF shares, although share price does not determine investment quality or economic cost.
VOO: an excellent default ETF
VOO charges 0.03% and invests in the S&P 500. Vanguard reported a 10-year annualized NAV return of 15.47% versus 15.51% for the benchmark for the period ending June 30, 2026.
VOO is a strong default because it combines a very low fee, substantial scale, broad brokerage availability, and a long operating record. It is an open-end ETF, unlike SPY’s older unit-investment-trust structure. Its tracking difference has historically been close to its expense ratio, although actual results depend on portfolio implementation, securities lending, trading costs, cash balances, and other factors.
IVV: a co-equal alternative to VOO
IVV is BlackRock’s iShares Core S&P 500 ETF. It charges 0.03%, launched in 2000, and reported approximately $868.3 billion in assets as of July 23, 2026. BlackRock reported a 10-year annualized total return of 15.47% versus 15.50% for the benchmark for the period ending June 30, 2026.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallThere is no meaningful reason for most long-term investors to regard IVV as categorically better or worse than VOO. Sponsor, structure details, securities lending, trading activity, tax-lot handling, and tracking implementation can produce small differences, but both funds are designed to provide essentially the same market-cap-weighted S&P 500 exposure.
FXAIX: the strongest low-cost retail mutual fund
FXAIX is Fidelity’s 500 Index Fund. Fidelity reported a 0.015% gross and net expense ratio as of April 29, 2026, no minimum investment at Fidelity, and approximately $827.5 billion in portfolio net assets as of June 30, 2026. Fidelity reported a 10-year annualized return of 15.49% versus 15.51% for the benchmark for the period ending June 30, 2026.
FXAIX is especially convenient for a Fidelity customer who prefers mutual funds, dollar-based purchases, automatic investing, and end-of-day pricing. It is not automatically available on identical terms at every brokerage. Check whether the fund is available and whether transaction fees apply before buying it outside Fidelity.
SWPPX: the natural Schwab mutual-fund choice
SWPPX is Schwab’s S&P 500 mutual fund. It charges 0.020%, has no minimum initial investment, and tracks the S&P 500. Schwab reported $143.3 billion in net assets as of July 20, 2026, and 503 holdings as of June 30, 2026.
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For the 10 years ending June 30, 2026, SWPPX returned 15.46% annualized versus 15.51% for the S&P 500 Index. It is generally the sensible mutual-fund answer for a Schwab investor. Switching solely to save 0.005 percentage points annually is unlikely to improve the investor’s outcome enough to justify inconvenience or taxable consequences in a brokerage account.
VFIAX: legitimate, but no longer the cost leader
VFIAX is Vanguard’s 500 Index Fund Admiral Shares. Vanguard lists a 0.04% expense ratio and a $3,000 minimum investment as of 2026.
VFIAX remains a sound long-term S&P 500 fund, particularly for an investor already using Vanguard mutual funds or a workplace plan that offers it. However, it is less compelling for a new retail investor when VOO charges 0.03% as an ETF and FXAIX and SWPPX charge less as mutual funds. Automatic mutual-fund contributions or plan availability may still outweigh the modest fee difference.
SPY: best trading vehicle, not best default buy-and-hold fund
SPY launched in January 1993 and was the first ETF listed in the United States. State Street reported a 0.0945% gross expense ratio and approximately $805.2 billion in assets as of August 6, 2026. It also has an exceptionally deep trading and options ecosystem. State Street says SPY represented 41% of all ETF options volume in 2025.
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VOO vs. IVV vs. SPYM vs. SPY
| Characteristic | SPYM | VOO | IVV | SPY |
|---|---|---|---|---|
| Benchmark | S&P 500 | S&P 500 | S&P 500 | S&P 500 |
| Expense ratio | 0.02% gross | 0.03% | 0.03% | 0.0945% gross |
| Best suited to | Low-cost long-term ETF ownership | Long-term ownership | Long-term ownership | Trading, hedging, and options |
| Fund structure | ETF | Open-end ETF | ETF | ETF/unit investment trust |
| Trading purpose | Ordinary ETF trading | Ordinary ETF trading | Ordinary ETF trading | Especially deep trading and options market |
For a buy-and-hold investor, choose any one of SPYM, VOO, or IVV based on fee, brokerage convenience, fractional-share availability, and personal preference. Choose SPY when its trading and options characteristics matter—not simply because it is the most famous ticker.
The nominal share price should not drive the decision. A $90 ETF is not economically cheaper than a $700 ETF. The percentage expense ratio and the amount invested determine the operating-cost difference. Share price matters operationally only if the brokerage does not support fractional ETF purchases or the investor is investing a small fixed amount.
How much do the fees matter?
Approximate annual operating expenses, assuming the balance and expense ratio remain unchanged, look like this:
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problems| Expense ratio | $10,000 balance | $100,000 balance |
|---|---|---|
| 0.015% | $1.50 | $15 |
| 0.020% | $2 | $20 |
| 0.030% | $3 | $30 |
| 0.040% | $4 | $40 |
| 0.0945% | $9.45 | $94.50 |
The difference between SPYM’s 0.02% and VOO or IVV’s 0.03% is approximately $1 per year for every $10,000 invested before compounding. That is real money, but it is usually too small to outweigh brokerage availability, automatic investing, trading behavior, or the inconvenience of changing a suitable existing holding.
The expense ratio is not the only cost. Investors should also consider bid-ask spreads, commissions or transaction fees, mutual-fund purchase or redemption fees, market impact, taxes, and the fund’s tracking difference. The SEC explains that fund expenses reduce returns, while the fund’s results can also differ from its benchmark because of trading costs and other implementation effects.
What recent performance shows
These sponsor-reported 10-year annualized total returns use the latest common month-end date in the available comparison: June 30, 2026.
| Fund | Fund return | Benchmark return | Approximate gap |
|---|---|---|---|
| VOO, NAV | 15.47% | 15.51% | -0.04 percentage points |
| IVV, NAV/total return | 15.47% | 15.50% | -0.03 |
| SPYM, NAV | 15.50% | 15.55% | -0.05 |
| FXAIX | 15.49% | 15.51% | -0.02 |
| SWPPX | 15.46% | 15.51% | -0.05 |
| SPY, NAV | 15.35% | 15.51% | -0.16 |
These are historical returns, not forecasts. They assume reinvestment of dividends and are net of fund expenses. NAV returns can differ from an ETF’s market-price returns. Small differences can also reflect rounding and different reporting conventions.
SPYM’s long-term comparison requires an additional qualification because its historical benchmark is linked across several indexes; State Street identifies the S&P 500 benchmark as applying from January 24, 2020. The table therefore should not be read as proof that one fund will lead the others in the future.
ETF or mutual fund: which wrapper is better?
Neither structure is universally superior. ETFs trade on an exchange during market hours, while mutual funds generally execute purchases and redemptions at the next calculated end-of-day net asset value. The SEC’s ETF bulletin and Vanguard’s comparison explain these structural differences.
Why choose an ETF?
- Intraday trading: ETFs can be bought or sold during the trading session.
- Order control: Investors can use limit orders and other exchange-trading tools.
- Portability: ETFs are generally straightforward to transfer between brokerages without changing the fund type.
- Potential tax efficiency: In-kind creation and redemption transactions can reduce the need for a fund to sell appreciated holdings.
- Convenience at many brokerages: There is usually no fund-level minimum, though fractional-share and order policies are broker-specific.
Why choose a mutual fund?
- Dollar-based investing: Mutual funds are naturally suited to investing an exact amount, such as $500 each month.
- Automatic contributions: Recurring investments can be simple to establish.
- No bid-ask spread at the transaction price: The investor receives the fund’s applicable NAV, subject to any brokerage charges or fund rules.
- End-of-day pricing: Investors cannot trade throughout the day, which may discourage unnecessary reactions to market movements.
- Plan availability: A mutual fund or collective-trust version may be the only index option in an employer retirement plan.
ETF tax efficiency is an advantage, not a guarantee that the fund will never distribute taxable capital gains. In a taxable account, a regulated investment company—including a mutual fund or ETF—may distribute dividends or capital gains. The IRS explains that these distributions can be taxable to shareholders even when the shareholder did not sell fund shares. The investor’s later sale of fund shares is a separate potential taxable event.
In a Roth IRA or traditional IRA, current fund distributions generally do not create the same current tax bill as they can in a taxable account. That makes fee, automation, fractional-share availability, and convenience more important than the ETF’s potential tax-efficiency advantage for many retirement-account investors.
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- Confirm the objective. Decide whether you specifically want conventional, market-cap-weighted S&P 500 exposure. If you want broader U.S. or global diversification, an S&P 500 fund may not be the right single holding.
- Check the account. A taxable brokerage account, Roth IRA, traditional IRA, and 401(k) can have different fund availability, tax consequences, and automation features.
- Verify the exact benchmark. The fund’s current prospectus or official page should identify the S&P 500 Index. Do not assume that every fund using “S&P 500” in its name is a conventional tracker.
- Choose the wrapper. Select an ETF for intraday trading or portability, or a mutual fund for automatic dollar-based investing and end-of-day pricing.
- Compare the full cost. Look beyond the expense ratio to spreads, commissions, transaction fees, redemption fees, taxes, and tracking difference.
- Review implementation. Compare multi-year NAV total returns with the fund’s stated benchmark using consistent dates.
- Check operational details. Confirm fractional ETF purchases, automatic investing, dividend handling, minimums, and whether the stated expense ratio is gross or net.
- Look at what you already own. A target-date fund, total-market fund, or employer-plan fund may already contain similar large-cap exposure.
Account-specific choices
Taxable brokerage account
Low-cost ETFs such as SPYM, VOO, and IVV are often attractive because of their portability, tax-lot flexibility, and potential structural tax efficiency. A mutual fund can still be suitable, but check its historical capital-gain distribution record before buying, particularly late in the year. Buying a mutual fund shortly before a distribution can create taxable income even though you did not hold it for the entire period that generated the gain.
Roth IRA or traditional IRA
The ETF-versus-mutual-fund tax distinction generally matters less in tax-advantaged accounts. Choose the format that makes consistent investing easiest. FXAIX, SWPPX, VOO, IVV, and SPYM can all be reasonable depending on availability and the investor’s preferences.
401(k) or other employer plan
Do not assume your plan offers the retail tickers in this article. A 401(k) may provide an institutional S&P 500 fund, collective investment trust, or separate share class with a much lower expense ratio than retail products. Compare:
- The plan option’s net expense ratio;
- Its investment objective and benchmark;
- Its multi-year tracking difference;
- Recordkeeping, administrative, or account-level fees;
- Whether it is an S&P 500 index fund, a broader U.S. equity fund, or an active large-cap fund.
The best 401(k) choice is the lowest-cost suitable option actually available in the plan—not necessarily VOO, IVV, or SPYM.
Make sure you are buying an exact S&P 500 tracker
Several products use the S&P 500 name but do not provide the standard market-cap-weighted exposure. Examples include:
- RSP, which tracks the S&P 500 Equal Weight Index;
- S&P 500 growth, value, dividend, or low-volatility funds;
- ESG or screened versions of the index;
- Covered-call products based on the S&P 500;
- Large-cap funds tracking the Russell 1000 or a proprietary index;
- Fidelity zero-fee funds tracking a Fidelity large-cap index rather than the S&P 500.
These may be reasonable strategies, but they are not interchangeable with a conventional S&P 500 index fund. Always verify the exact benchmark.
Is one S&P 500 fund enough?
One fund may be enough for the U.S. large-cap stock portion of a portfolio. It is not necessarily enough for an entire financial plan.
Adding VOO to IVV, or SPYM to SPY, does not meaningfully diversify an investor because the funds generally own the same companies in nearly the same market-cap weights. Owning multiple tickers can add administrative clutter, make rebalancing less clear, and create unnecessary tax-lot decisions in a taxable account.
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Broader diversification means adding exposures the S&P 500 does not contain, such as:
- U.S. small-cap and mid-cap stocks;
- International developed-market and emerging-market stocks;
- Bonds or other assets that may behave differently from stocks.
The appropriate mix depends on time horizon, risk tolerance, income needs, and other holdings. An investor nearing retirement may need a different overall allocation from a young investor with a long time horizon; the fund choice alone does not determine portfolio risk.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Risks of S&P 500 index funds
Indexing reduces the risk of choosing an individual company, but it does not eliminate investment risk. An S&P 500 fund can lose money, including substantial amounts, when U.S. stocks fall. Important risks include:
- Market risk: The fund has no principal guarantee.
- Large-cap concentration: The biggest companies drive a large share of results.
- Sector concentration: Market leadership can make particular sectors represent a large portion of the index.
- Valuation risk: Strong past performance does not guarantee attractive future returns.
- Geographic limitations: The index excludes companies headquartered outside the United States.
- Tracking difference: Fees, trading, sampling, securities lending, taxes, and cash balances can cause the fund to lag or occasionally differ from its benchmark.
- ETF trading risk: An ETF’s market price can trade above or below NAV, especially during volatile markets. State Street warns that investors may pay more than NAV when buying or receive less than NAV when selling.
- Tax risk: Taxable distributions and sales can affect after-tax returns.
- Behavioral risk: Selling during a downturn or switching funds to chase a small recent performance difference can be more damaging than a one-basis-point fee difference.
How to buy an S&P 500 index fund
- Open or use an eligible taxable brokerage, IRA, or employer retirement account.
- Search for the exact ticker and confirm the fund’s full name. This is particularly important because the former SPLG ticker is now SPYM.
- Confirm that the fund’s stated benchmark is the S&P 500 Index, not an equal-weight, factor, screened, or related index.
- Review the current prospectus, expense ratio, minimum, distribution information, and brokerage transaction terms.
- For an ETF, decide whether a market order or limit order is appropriate. A market order prioritizes execution but does not guarantee a particular price; a limit order sets a maximum purchase price or minimum sale price but may not execute. Consider the bid-ask spread and market conditions.
- For a mutual fund, submit a dollar or share purchase before the brokerage’s applicable cutoff. The order generally receives the next calculated end-of-day NAV.
- Choose whether to reinvest dividends and capital-gain distributions.
- Review the holding periodically—perhaps when your account, plan, fees, or investment objective changes—rather than replacing it because of short-term performance.
Brokerage interfaces, fractional-share rules, mutual-fund transaction fees, and automatic-investment features change over time. Check the current terms at your brokerage instead of assuming every broker handles every fund in the same way.
How often should you replace the fund?
Usually, not often. An index fund automatically adjusts as the index changes constituents and weights, so investors do not need to trade every time a company enters or leaves the S&P 500.
Consider a change only when there is a material reason, such as:
- The expense ratio rises substantially;
- The fund stops tracking the intended benchmark;
- Your brokerage or retirement plan changes availability or fees;
- The fund no longer fits your desired ETF or mutual-fund structure;
- You are changing your overall asset allocation rather than switching between duplicate trackers.
In a taxable account, selling a suitable fund can create capital gains. A tiny fee difference is not automatically enough to justify that tax cost.
Frequently Asked Questions
Is VOO better than SPY?
For most long-term buy-and-hold investors, VOO is usually the more cost-efficient choice because it charges 0.03% versus SPY’s 0.0945% while targeting the same S&P 500 exposure. SPY can be preferable for options, hedging, frequent trading, or unusually large orders because of its trading and options liquidity.
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Neither is universally better. Both charge 0.03%, track the S&P 500, have substantial scale, and are strong long-term ETF choices. Small differences in tracking, trading, securities lending, or tax-lot implementation usually matter less than brokerage convenience and investing consistently.
Is SPYM the same as SPLG?
SPYM is the current ticker for the fund formerly known as SPLG. State Street changed the ticker and fund name effective before the market opened on October 31, 2025. Older articles may still use SPLG.
Is FXAIX better than VOO?
FXAIX may be better for a Fidelity investor who wants automatic dollar-based mutual-fund purchases and end-of-day pricing. Its reported expense ratio is 0.015%, compared with 0.03% for VOO. VOO may be better for an ETF investor who wants intraday trading, portability, or ETF tax-lot flexibility. Both target the S&P 500.
Should I buy SPY for retirement?
You can, but SPY’s higher fee is generally unnecessary for a retirement investor who only wants long-term S&P 500 exposure. VOO, IVV, or SPYM are typically more cost-efficient ETF alternatives. In a 401(k), choose the lowest-cost suitable option actually offered by the plan.
What is the cheapest S&P 500 index fund in this comparison?
FXAIX has the lowest stated expense ratio overall at 0.015% and no minimum investment at Fidelity. Among the mainstream exact S&P 500 ETFs covered here, SPYM has the lowest stated gross expense ratio at 0.02%. Expense ratios and waivers can change, so verify current sponsor disclosures.
Can I own both VOO and IVV?
You can, but owning both generally does not add meaningful diversification because they track the same index and hold nearly the same companies. One suitable low-cost S&P 500 fund is usually enough for that allocation.
Is the S&P 500 diversified?
It is diversified across many U.S. large-cap companies, but it is not a complete global portfolio. It excludes most small- and mid-cap stocks, non-U.S. companies, and bonds, and its market-cap weighting can concentrate the portfolio in its largest companies.
Are S&P 500 index funds safe?
They are diversified compared with owning one or a few individual stocks, but they are not risk-free. Their value can fall significantly with the U.S. stock market, and they do not guarantee principal or a positive return over a particular period.
Is an ETF or mutual fund better in a Roth IRA?
Neither is automatically better. Because current tax treatment is usually less important inside a Roth IRA, compare availability, fees, automatic investing, fractional shares, and how easily the format fits your habits. A low-cost mutual fund can be just as practical as an ETF.
What if my 401(k) does not offer VOO, IVV, SPYM, or SPY?
Use the plan’s lowest-cost suitable index option after checking its benchmark, net expense ratio, tracking difference, and administrative fees. Institutional funds and collective trusts may use different names or lack a familiar retail ticker while providing comparable or broader exposure.
Does an S&P 500 fund pay dividends?
Yes. The companies in the index pay dividends, and the funds generally distribute income quarterly. You can typically choose to receive distributions in cash or reinvest them, subject to your brokerage or plan’s options.
Can an S&P 500 index fund lose money?
Yes. Index funds can lose money when the underlying stocks decline. Indexing lowers individual-company selection risk but does not remove market, valuation, concentration, or behavioral risk.
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Does a lower share price mean a better fund?
No. Share price is only the price of one unit. Compare the amount invested, expense ratio, tracking difference, spreads, taxes, and account features. A lower share price can be operationally useful when fractional ETF purchases are unavailable, but it does not make the fund economically cheaper.
The Bottom Line
The bottom line
Choose SPYM, VOO, or IVV for ordinary long-term ETF investing; the fee advantage of SPYM is real but small, while VOO and IVV offer equally strong mainstream defaults. Choose FXAIX at Fidelity or SWPPX at Schwab if you prefer mutual-fund automation and dollar-based investing. Choose SPY when deep trading and options liquidity justify its higher fee. For a 401(k), ignore the retail ticker list if necessary and select the plan’s lowest-cost suitable index option.
Most importantly, verify the exact benchmark, account availability, total costs, and tax consequences. One S&P 500 fund is generally enough for this allocation; owning several near-identical trackers does not make a portfolio meaningfully more diversified.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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