It’s pretty surreal to write, but Vanguard does not actually have the cheapest fees anymore. Round 1 Winner: Calling this one a draw, since both companies offer elite options for the only type of index funds we should bother with. Fidelity is supported by the highly hyped, hot off the press Fidelity ZERO Funds, which likewise include a Total Market Index Fund, International Index Fund, and US Bonds Index Fund.Vanguard is anchored by classics like their Total Stock Market Index Fund, Total International Index Fund, and Total Bond Index Fund.Realistically, we only need our broker of choice to have enough solid options to build a good three-fund portfolio.Įither Fidelity or Vanguard serves that purpose just fine.

Honestly though, that’s mostly a bunch of marketing nonsense, in my opinion. Vanguard has the edge in ETFs, with 1,800 commission-free ETFs.(Versus “only” 2,800 commission-free funds at Vanguard) Fidelity technically has the edge in mutual funds, sporting an impressive list of 3,700 mutual funds which can be bought and sold for $0.To the 9 round showdown! Round 1: Investment and Mutual Fund Selectionīoth Fidelity and Vanguard have access to thousands of fine index fund choices. On the whole, the two companies are both top notch, and the differences are somewhat splitting hairs.(Put simply, if these guys don’t offer it, it’s probably not an investment you or I have any business being in…) You can use either company to open a taxable investment fund, Roth or Traditional IRA, college savings fund, or just about any other relevant investment vehicle.*2018 returns used – aligns closely with returns since fund inception.Īnd from that huge chart of technical mumbo jumbo, here’s the part that actually matters to you: Monday-Friday phone support from 8 AM – 10 PM ET.(For the impatient, you can use this table of contents to jump to my final Vanguard or Fidelity conclusion.) Vanguard vs. Fidelity nuances you need to know to stretch your investment returns the farthest. I’m pitting Vanguard against Fidelity, and then breaking down all the Vanguard vs. Is Vanguard or Fidelity the better choice for investing your hard-earned dollars? And they’re smart to ask the question that’s on everybody’s mind:

Not surprisingly, this has left a lot of well-meaning index fund investors caught in the middle of the war.

The move dethrones Vanguard’s decades long position as the cheapest index fund provider. And they’ve now taken the arms race to uncharted territory – Fidelity is literally offering FREE index funds. If you’ve followed the investing headlines (or even just watched the Super Bowl commercials) you’ve probably already heard the shocking news.įidelity’s declared war with Vanguard.

Fidelity zero large cap index