Vanguard vs Fidelity 2026: Fees, Funds & Features
Vanguard is investor-owned and emphasizes low-cost index funds with expense ratios averaging 0.08%, while Fidelity is publicly traded and offers more diverse investment options including actively managed funds (averaging 0.67% expense ratios) and robust trading platforms. The core difference is cost philosophy: Vanguard prioritizes minimizing fees, while Fidelity balances fees with breadth of services.
Vanguard
Investor-owned financial services company specializing in low-cost index funds and passive investing.
Passive investors, cost-conscious savers, long-term buy-and-hold investors, and those wanting alignment between client and company interests.
Fidelity
Publicly traded investment firm offering diverse mutual funds, brokerage services, and comprehensive financial planning tools.
Active traders, investors wanting fund variety, those needing comprehensive financial planning, and investors comfortable with slightly higher fees for service breadth.
Quick Answer
AI SummaryVanguard is investor-owned and emphasizes low-cost index funds with expense ratios averaging 0.08%, while Fidelity is publicly traded and offers more diverse investment options including actively managed funds (averaging 0.67% expense ratios) and robust trading platforms. The core difference is cost philosophy: Vanguard prioritizes minimizing fees, while Fidelity balances fees with breadth of services.
Our Verdict
AI-assistedChoose Vanguard if you prioritize cost-effective passive investing, value low expense ratios, and prefer an investor-owned structure aligned with client interests. Choose Fidelity if you want maximum investment variety, advanced trading tools, comprehensive financial planning features, and don't mind slightly higher fees for expanded services.
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Choose Vanguard if
Passive investors, cost-conscious savers, long-term buy-and-hold investors, and those wanting alignment between client and company interests.
Choose Fidelity if
Best pickActive traders, investors wanting fund variety, those needing comprehensive financial planning, and investors comfortable with slightly higher fees for service breadth.
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Key Differences at a Glance
- Company Structure:✓ Vanguard wins(Investor-owned mutual company vs Publicly traded corporation)
- Average Expense Ratio (Index Funds):✓ Vanguard wins(0.08% vs 0.25%)
- Number of Mutual Funds Offered:✓ Fidelity wins(5,000+ vs 400+)
Key Facts & Figures
45 numeric metrics compared
| Metric | Vanguard | Fidelity | Ratio |
|---|---|---|---|
| Mobile App Rating(stars out of 5) | 4.5/5 | — | — |
| Stock Trading Commission(USD per trade) | Free | — | — |
| ETF Expense Ratio (Average)(%) | 0.05% | — | — |
| Minimum Account Balance(USD) | $0 | — | — |
| Account Types Offered(count) | 30+ | — | — |
| Mutual Funds Available(count) | 9,200+ | — | — |
| Customer Service Rating(stars out of 5) | 4.8/5 | — | — |
| Minimum Initial Investment(USD) | $0 | $0 | |
| Average Mutual Fund Expense Ratio(%) | 0.08% | 0.45% | |
| Stock Trading Commission(USD) | $0 | $0 | |
| Assets Under Management(Trillion USD) | $8.4T | $12.9T | |
| Number of ETFs Available(count) | 420+ | 2,100+ | |
| IRA Contribution Limit (2026)(USD) | $7,000 | $7,000 | |
| Stock Trading Commission(USD) | $0 | $0 per trade | |
| Robo-Advisor Minimum Balance(USD) | $50,000 | $0 | |
| Assets Under Management(USD Trillions) | $8.1 trillion | $11.3 trillion (retirement accounts) | |
| Number of Mutual Funds(count) | 430+ | 3,500+ | |
| ETF Universe Access(count) | 1,500+ | 2,000+ | |
| Account Opening Requirement(USD) | $0 | $0 | |
| Assets Under Management (AUM)(Trillion USD) | $8.5 trillion | — | — |
| Minimum Account Balance(USD) | $3,000 | None | |
| Average Index Fund Expense Ratio(%) | 0.03% | — | — |
| Stock & ETF Commission(USD per trade) | $0 | — | — |
| Number of Index Funds Available(count) | 425+ | — | — |
| Client Satisfaction Rating (2024)(out of 5) | 4.6 stars | — | — |
| Personal Advisor Service Minimum(USD) | $50,000 | — | — |
| Average Expense Ratio (Index Funds)(%) | 0.08% | 0.25% | |
| Average Expense Ratio (Active Funds)(%) | 0.56% | 0.67% | |
| Robo-Advisor Annual Fee(%) | 0.30% | 0.35% | |
| Total Mutual Funds Available(count) | 400+ | 5,000+ | |
| Global Assets Under Management(trillion USD) | $8.2 trillion | $12.9 trillion | |
| Stock/ETF Trading Commission(USD) | $0 | $0 | |
| Account Types Offered(count) | 3 (Brokerage, IRA, 401k) | 8+ (includes HSA, 529, Taxable) | |
| Minimum Initial Investment(USD) | $0 | $0 | |
| Commission on Stock Trades(USD) | Free | Free | |
| Funded Customers(millions) | ~12-15 (estimated) | ~12-15 (estimated) | |
| Total Platform Assets(billions USD) | $11,900+ (AUM) | $11,900+ (AUM) | |
| Retirement Account Types(count) | Comprehensive (Traditional, Roth, SEP, Solo 401k) | Comprehensive (Traditional, Roth, SEP, Solo 401k) | |
| Mobile App Rating(stars) | 4.7 stars | 4.7 stars | |
| Minimum Account Balance(USD) | $0 | $0 | |
| Checking Account Monthly Fee(USD) | $0 | $0 | |
| High-Yield Savings APY(%) | 4.55% | 4.55% | |
| Mutual Fund Selection(count) | 3,500+ funds | 3,500+ funds | |
| Physical Locations(branches) | 200+ locations | 200+ locations | |
| Account Minimum Requirement(USD) | $0 for standard accounts | $0 for standard accounts |
Sourced from publicly available data ·
Key Differences
7 attributes compared head-to-head
- Investor-owned mutual company(winner)Company StructurePublicly traded corporation
- 0.08%(winner)Average Expense Ratio (Index Funds)0.25%
- 400+Number of Mutual Funds Offered5,000+(winner)
- $0 (no minimum for many funds)Minimum Initial Investment$0 (no minimum for most)
- $0Trading Commissions (Stocks/ETFs)$0
- 0.30%(winner)Robo-Advisor Fee (Annual)0.35%
- 3 account typesBrokerage Account Options8+ account types(winner)
- Company Structure
Vanguard
Investor-owned mutual company(winner)
Fidelity
Publicly traded corporation
- Average Expense Ratio (Index Funds)
Vanguard
0.08%(winner)
Fidelity
0.25%
- Number of Mutual Funds Offered
Vanguard
400+
Fidelity
5,000+(winner)
- Minimum Initial Investment
Vanguard
$0 (no minimum for many funds)
Fidelity
$0 (no minimum for most)
- Trading Commissions (Stocks/ETFs)
Vanguard
$0
Fidelity
$0
- Robo-Advisor Fee (Annual)
Vanguard
0.30%(winner)
Fidelity
0.35%
- Brokerage Account Options
Vanguard
3 account types
Fidelity
8+ account types(winner)
Full Comparison
| Attribute | Vanguard | Fidelity |
|---|---|---|
| Average Expense Ratio(%) | ~0.08% | ~0.10% (0% on Zero funds) |
| Stock Trading Commission(USD per trade) | Free | — |
| ETF Expense Ratio (Average)(%) | 0.05% | — |
| Average Index Fund Expense Ratio(%) | 0.03% | — |
| Robo-Advisor Management Fee(%) | Not offered | — |
Show 5 more attributesStock & ETF Commission(USD per trade) $0 — Average Expense Ratio (Index Funds)(%) 0.08% 0.25% Average Expense Ratio (Active Funds)(%) 0.56% 0.67% Robo-Advisor Annual Fee(%) 0.30% 0.35% Commission on Stock Trades(USD) Free — | ||
| Research Tools Quality(rating) | Very Good (Vanguard Advisor) | — |
| Mobile App Rating(stars out of 5) | 4.5/5 | — |
| Mobile App Rating(stars) | 4.7 stars | — |
| Robo-Advisor Available(yes/no) | Yes (Vanguard Personal Advisor) | — |
| Investor Alignment Model(structure) | Client-owned (mutual structure) | — |
| New Accounts Opened (Feb 2026)(thousands) | 17 new funds launched | — |
| Fee-Only Advisory Services(availability) | Vanguard Advisors (premium support) | — |
| Personal Advisor Service Minimum(USD) | $50,000 | — |
| Minimum Account Balance(USD) | $0 | — |
| Minimum Initial Investment(USD) | $0 | $0 |
| Account Minimum Requirement(USD) | $0 for standard accounts | — |
| Account Types Offered(count) | 30+ | — |
| Mutual Funds Available(count) | 9,200+ | — |
| Number of ETFs Available(count) | 420+ | 2,100+(winner) |
| Customer Service Rating(stars out of 5) | 4.8/5 | — |
| Average Mutual Fund Expense Ratio(%) | 0.08%(winner) | 0.45% |
| Stock Trading Commission(USD) | $0 | $0 |
| Assets Under Management(Trillion USD) | $8.4T | $12.9T(winner) |
| IRA Contribution Limit (2026)(USD) | $7,000 | $7,000 |
| Stock Trading Commission(USD) | $0 | $0 per trade |
| Robo-Advisor Minimum Balance(USD) | $50,000 | $0(winner) |
| Cryptocurrency Support | Limited | — |
| AI/Digital Planning Tools | Advanced (Monarch Money, Fiscal.ai) | — |
| Assets Under Management(USD Trillions) | $8.1 trillion | $11.3 trillion (retirement accounts)(winner) |
| Global Assets Under Management(trillion USD) | $8.2 trillion | $12.9 trillion(winner) |
| Funded Customers(millions) | ~12-15 (estimated) | — |
| Total Platform Assets(billions USD) | $11,900+ (AUM) | — |
| Number of Mutual Funds(count) | 430+ | 3,500+(winner) |
| ETF Universe Access(count) | 1,500+ | 2,000+(winner) |
| Customer Service Availability(hours/week) | 120 (24/5) | 168 (24/7)(winner) |
| Account Opening Requirement(USD) | $0 | $0 |
| Assets Under Management (AUM)(Trillion USD) | $8.5 trillion | — |
| Minimum Account Balance(USD) | $3,000 | None(winner) |
| Minimum Initial Investment(USD) | $0 | $0 |
| Minimum Account Balance(USD) | $0 | — |
| Physical Locations(branches) | 200+ locations | — |
| Number of Index Funds Available(count) | 425+ | — |
| Client Satisfaction Rating (2024)(out of 5) | 4.6 stars | — |
| Total Mutual Funds Available(count) | 400+ | 5,000+(winner) |
| Stock/ETF Trading Commission(USD) | $0 | $0 |
| Account Types Offered(count) | 3 (Brokerage, IRA, 401k) | 8+ (includes HSA, 529, Taxable)(winner) |
| Cryptocurrency Products(count) | Growing with stablecoin FIDD | — |
| Retirement Account Types(count) | Comprehensive (Traditional, Roth, SEP, Solo 401k) | — |
| International Trading(availability) | Comprehensive global access | — |
| Options Trading(availability) | Available | — |
| Research Tools Quality(tier) | Professional-grade, free for most | — |
| Research Tools Depth | Extensive library | — |
| Professional Advisory Available(boolean) | Yes (fee-based and robo) | — |
| Account Types Available | Trading, banking, planning, wealth mgmt | — |
| Commission on Stock Trading | Free | — |
| 2025 Revenue(billion USD) | Market leader (private) | — |
| Mobile App Experience | Strong but complex | — |
| Checking Account Monthly Fee(USD) | $0 | — |
| High-Yield Savings APY(%) | 4.55% | — |
| Mutual Fund Selection(count) | 3,500+ funds | — |
FidelityShow 5 more attributes
Pros & Cons
10 pros·6 cons across both
Vanguard
Pros
- Industry-leading low expense ratios (0.08% average on index funds)
- Investor-owned structure means no shareholder profit motive competing with client interests
- $8.2 trillion in global assets under management (largest mutual company)
- Excellent reputation for passive index fund investing
- Strong educational resources focused on long-term investing philosophy
Cons
- Limited actively managed fund selection compared to competitors
- Smaller range of specialized investment products and options
- Less comprehensive financial advisory services at basic tier
Fidelity
Pros
- 5,000+ mutual funds available (vs Vanguard's 400+) with strong active management options
- Superior trading platforms with advanced research tools and screeners
- Comprehensive financial planning suite including retirement planning, tax optimization
- 8+ account type options including HSA, 529, and specialized accounts
- $12.9 trillion in assets under management across all segments
Cons
- Higher average expense ratios on index funds (0.25% vs Vanguard's 0.08%)
- Publicly traded structure means profit incentives can conflict with client needs
- More complex platform may overwhelm beginner investors
Frequently Asked Questions
5 questions
Vanguard has significantly lower fees. Their index fund expense ratio averages 0.08% compared to Fidelity's 0.25% — a difference that compounds over decades. For a $100,000 investment over 30 years at 7% annual returns, this 0.17% difference costs approximately $18,000 more in fees at Fidelity. However, Fidelity's active funds are only marginally higher (0.67% vs Vanguard's 0.56%).
Resources & Learn More
Curated sources to dive deeper
Wikipedia
- W
Vanguard on Wikipedia (opens in new tab)
Investor-owned financial services company specializing in low-cost index funds and passive investing.
- W
Fidelity on Wikipedia (opens in new tab)
Publicly traded investment firm offering diverse mutual funds, brokerage services, and comprehensive financial planning tools.
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