Vanguard vs Fidelity
Vanguard
Pioneer of index investing, $8T+ AUM, investor-owned
Long-term buy-and-hold index investors
Fidelity
Full-service broker, zero-fee funds, $12T+ AUM
All-around investing and active traders
Short Answer
Vanguard pioneered low-cost index investing and manages $8T+ in assets with the world's lowest average expense ratios. Fidelity offers zero expense ratio index funds, better account features, a wider range of services, and superior trading platforms.
Our Verdict
Both are excellent. Fidelity edges out for overall features and usability. Vanguard remains the gold standard for buy-and-hold index investors.
Choose Vanguard if
Long-term buy-and-hold index investors
Choose Fidelity if
All-around investing and active traders
Key Differences at a Glance
Key Differences
Vanguard
$8T+
Fidelity
$12T+🏆
Vanguard
~0.03% (VOO)
Fidelity
0.00% (FZROX)🏆
Vanguard
Basic
Fidelity
Excellent (Active Trader Pro)🏆
Vanguard
No
Fidelity
Yes (FZROX, FZILX)🏆
Vanguard
Good
Fidelity
Better🏆
Pros & Cons
Vanguard
Pros
- Lowest average expense ratios
- Investor-owned (no profit motive)
- Pioneer of passive investing
- $8T+ assets under management
Cons
- Less polished trading interface
- No zero-fee index funds (vs Fidelity)
- Less customer service than Fidelity
Fidelity
Pros
- Zero expense ratio index funds (FZROX, FZILX)
- Better trading platform
- Cash management account
- More customer service options
Cons
- Privately owned (profit motive)
- Proprietary funds not transferable
- Some funds slightly higher ER
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Frequently Asked Questions
Both are excellent. Fidelity wins on features, trading, and zero-fee funds. Vanguard wins on the philosophical commitment to lowest costs and investor-owned structure.
Resources & Learn More
Dive deeper with these curated resources
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