Fidelity or Vanguard
Fidelity or Vanguard
We each have a 401k at Fidelity. Our taxable accounts are (now) at Vanguard. Where should we set up our Traditional to Backdoor Roth IRAs?
Is one firm easier or better, or is a matter of personal preference? We will be contributing the max each year going forward. Does one firm have better fund choices?
Is one firm easier or better, or is a matter of personal preference? We will be contributing the max each year going forward. Does one firm have better fund choices?
Re: Fidelity or Vanguard
I think Vanguard has better products, and Fidelity has better service. Holding Vanguard ETFs in a Fidelity account you get the best of both.
Henceforth, content shall be my aim, and anticipation my joy. -Alfred Billings Street
- ruralavalon
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Re: Fidelity or Vanguard
Vanguard has a much broader selection of good low expense ratio funds.
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Re: Fidelity or Vanguard
I believe it is no cost to leave Vanguard IRAs, while I am not so sure that is true of other places.
- Youngblood
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Re: Fidelity or Vanguard
I enjoy having both accounts. Research for me is better at Fido.
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Bernard M. Baruch
Re: Fidelity or Vanguard
In my working years, my company 401k was managed by Fidelity. After retirement I rolled it over to Fidelity. Have been very satisfied with them. They have a retail store near our home, so that's an advantage; though I've only been over there 2 or 3 times. Online customer service is excellent. They never bother, nor try to sell me anything; and are very responsive whenever I have question or need help, such as tweaking RMD's. Their Spartan funds have low ER's; and are competitive to VG.
On the other hand we have wife's rollover IRA with Vanguard; done by design. Have been very satisfied with them as well. Nice and simple website, and absolutely no problems in dealing with them. Good choice of low cost funds. Monthly and annual reports well constructed, and easy to read.
In the next couple of years or so we will wind up at one or the other for simplicity's sake; but honestly, if we had to make a choice today, I could flip a coin and would not be disappointed either way.
On the other hand we have wife's rollover IRA with Vanguard; done by design. Have been very satisfied with them as well. Nice and simple website, and absolutely no problems in dealing with them. Good choice of low cost funds. Monthly and annual reports well constructed, and easy to read.
In the next couple of years or so we will wind up at one or the other for simplicity's sake; but honestly, if we had to make a choice today, I could flip a coin and would not be disappointed either way.
Re: Fidelity or Vanguard
I have funds at both and agree with all the above posts.
I personally prefer mutual funds over equivalent ETFs. If the Fidelity Spartan funds give you all the choices you need I would go with Fidelity. Otherwise, I would probably go with Vanguard.
I personally prefer mutual funds over equivalent ETFs. If the Fidelity Spartan funds give you all the choices you need I would go with Fidelity. Otherwise, I would probably go with Vanguard.
Re: Fidelity or Vanguard
Fidelity is in business to make a profit for the family that owns it. Vanguard is in business to provide low cost investing to its customers. Fidelity has mostly high cost options and a small number of low cost choices. The only reason Fidelity has those choices is because it is in competition with Vanguard. Were it not for Vanguard, Fidelity would not have those choices. I prefer to give my business to the company responsible for the low cost options we have today. Vanguard also has the widest range of low cost funds because all of their funds are low cost. In other words, Vanguard's motivation is for me to be successful with their products, while Fidelity's motivation is to make as much money from my business as they can.
Jeff
Jeff
Re: Fidelity or Vanguard
Thank you all for your insight.
Re: Fidelity or Vanguard
6 in one hand ,half a dozen in the other
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
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Re: Fidelity or Vanguard
I think you are quite naïve to believe this. Both Vanguard and Fidelity are determined to grow their business and have healthy gross profits. This is the same mentality that thinks that mutual insurance companies are so much better than the better for profit insurance companies such as Amica, USAA, etc... They are not.jsl11 wrote:In other words, Vanguard's motivation is for me to be successful with their products, while Fidelity's motivation is to make as much money from my business as they can.
Jeff
Sure Vanguard has great index funds, but I happen to believe that it is the competition from Fidelity, other index fund companies and ETFs that have forced them to be cost competitive over the last ten - fifteen years.
This is not John Bogle's Vanguard anymore. Pay attention to Vanguard's marketing over the last decade, it has been towards higher expense products. They are still a great company and offer many of the best indexed products for individual investors, but don't believe for a minute that their motivations are purely altruistic.
Don't associate human traits to a business. Evaluate products entirely on their pros and cons.
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Re: Fidelity or Vanguard
I have a 3 fund portfolio in spartan advantage index funds. The bond fud is equal in er to vanguard, the international fund is 17% more expensive at vanguard and the total stock is 20% more expensive at Fidelity. I may move my total stock to vanguard. $650,000 moved would save me $65 a year.
They are the same
They are the same
Bogle: Smart Beta is stupid
Re: Fidelity or Vanguard
Vanguard wants to grow their business. This results in lower fees for all their customers, old and new. In fact, over the years, Vanguard has been lowering their prices whenever they can. Vanguard is the leader in low costs. Fidelity is a follower, offering low costs only when necessary to compete with Vanguard. The owners of Fidelity, the Johnson family, are some of the richest people in the United States. Vanguard returns its profits to the shareholders of its funds through lower expenses. Fidelity has brick and mortar stores all over the country. Who do think pays for those stores? Vanguard's employee do not work on commission. I would expect the Fidelity brokers who sell the expensive funds have an incentive to act in their own self interest. I don't think I am naïve at all.Spirit Rider wrote:I think you are quite naïve to believe this. Both Vanguard and Fidelity are determined to grow their business and have healthy gross profits. This is the same mentality that thinks that mutual insurance companies are so much better than the better for profit insurance companies such as Amica, USAA, etc... They are not.jsl11 wrote:In other words, Vanguard's motivation is for me to be successful with their products, while Fidelity's motivation is to make as much money from my business as they can.
Jeff
Sure Vanguard has great index funds, but I happen to believe that it is the competition from Fidelity, other index fund companies and ETFs that have forced them to be cost competitive over the last ten - fifteen years.
This is not John Bogle's Vanguard anymore. Pay attention to Vanguard's marketing over the last decade, it has been towards higher expense products. They are still a great company and offer many of the best indexed products for individual investors, but don't believe for a minute that their motivations are purely altruistic.
Don't associate human traits to a business. Evaluate products entirely on their pros and cons.
Re: Fidelity or Vanguard
Agree. I have both and find them equally as good. Vanguard chose low cost to expand their business and Fidelity chose low cost to expand their business.Spirit Rider wrote:I think you are quite naïve to believe this. Both Vanguard and Fidelity are determined to grow their business and have healthy gross profits. This is the same mentality that thinks that mutual insurance companies are so much better than the better for profit insurance companies such as Amica, USAA, etc... They are not.jsl11 wrote:In other words, Vanguard's motivation is for me to be successful with their products, while Fidelity's motivation is to make as much money from my business as they can.
Jeff
Sure Vanguard has great index funds, but I happen to believe that it is the competition from Fidelity, other index fund companies and ETFs that have forced them to be cost competitive over the last ten - fifteen years.
This is not John Bogle's Vanguard anymore. Pay attention to Vanguard's marketing over the last decade, it has been towards higher expense products. They are still a great company and offer many of the best indexed products for individual investors, but don't believe for a minute that their motivations are purely altruistic.
Don't associate human traits to a business. Evaluate products entirely on their pros and cons.
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley
Re: Fidelity or Vanguard
Not quite. Vanguard was always low cost with costs being reduced as Vanguard grew. Fidelity was originally high cost, and still is. They just added a small number of inexpensive funds to compete with Vanguard.bengal22 wrote:Agree. I have both and find them equally as good. Vanguard chose low cost to expand their business and Fidelity chose low cost to expand their business.
Re: Fidelity or Vanguard
With my short research, I found vanguard to be more simplified and fidelity to be more complicated (not necessarily a bad thing)
Fidelity website looks fresh compared to vanguard, though, but I've never seen their control panels, if it's important to you maybe you should also get some feedback on how user friendly their websites, mobile apps and dashboards are.
Fidelity website looks fresh compared to vanguard, though, but I've never seen their control panels, if it's important to you maybe you should also get some feedback on how user friendly their websites, mobile apps and dashboards are.
Re: Fidelity or Vanguard
I am sure vanguard originally had a market plan that emphasized low cost to expand their market share. Does it really matter who thought of it first.jsl11 wrote:Not quite. Vanguard was always low cost with costs being reduced as Vanguard grew. Fidelity was originally high cost, and still is. They just added a small number of inexpensive funds to compete with Vanguard.bengal22 wrote:Agree. I have both and find them equally as good. Vanguard chose low cost to expand their business and Fidelity chose low cost to expand their business.
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley
Re: Fidelity or Vanguard
In my opinion, Fidelity would never have had low cost funds were it not for Vanguard. We have Vanguard and John Bogle to thank for the low cost options available today. I prefer to reward Vanguard with my business as a thank you. Fidelity is just another financial company that will take advantage of their customers with high priced products given the opportunity.bengal22 wrote:I am sure vanguard originally had a market plan that emphasized low cost to expand their market share. Does it really matter who thought of it first.jsl11 wrote:Not quite. Vanguard was always low cost with costs being reduced as Vanguard grew. Fidelity was originally high cost, and still is. They just added a small number of inexpensive funds to compete with Vanguard.bengal22 wrote:Agree. I have both and find them equally as good. Vanguard chose low cost to expand their business and Fidelity chose low cost to expand their business.
Re: Fidelity or Vanguard
These people seem to agree with most of you:jsl11 wrote:In my opinion, Fidelity would never have had low cost funds were it not for Vanguard. We have Vanguard and John Bogle to thank for the low cost options available today. I prefer to reward Vanguard with my business as a thank you. Fidelity is just another financial company that will take advantage of their customers with high priced products given the opportunity.bengal22 wrote:I am sure vanguard originally had a market plan that emphasized low cost to expand their market share. Does it really matter who thought of it first.jsl11 wrote:Not quite. Vanguard was always low cost with costs being reduced as Vanguard grew. Fidelity was originally high cost, and still is. They just added a small number of inexpensive funds to compete with Vanguard.bengal22 wrote:Agree. I have both and find them equally as good. Vanguard chose low cost to expand their business and Fidelity chose low cost to expand their business.
http://lifehacker.com/five-best-investm ... 1628737219
August, 2014
Betterment 11.54% (259 votes)
Vanguard 51.25% (1,150 votes)
Fidelity 23.98% (538 votes)
TD Ameritrade 9.76% (219 votes)
Bogleheads 3% (78 votes)
Total Votes: 2,244
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Re: Fidelity or Vanguard
Fidelity has far more content, and better help with longer hours.
Vanguard has offered very competitive investment products, and year by year
Fidelity is approaching Vanguard's low cost options, not only with Spartan, but
with comission-free ishares.
Both are fine IMO.
Vanguard has offered very competitive investment products, and year by year
Fidelity is approaching Vanguard's low cost options, not only with Spartan, but
with comission-free ishares.
Both are fine IMO.
Re: Fidelity or Vanguard
What does longer hours mean? Do you mean contact/support? How often do you contact them?malabargold wrote:Fidelity has far more content, and better help with longer hours.
Vanguard has offered very competitive investment products, and year by year
Fidelity is approaching Vanguard's low cost options, not only with Spartan, but
with comission-free ishares.
Both are fine IMO.
- ruralavalon
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Re: Fidelity or Vanguard
Fidelity has only about a dozen low expense ratio mutual funds, their Spartan Advantage funds. Every Vanguard mutual fund has a low expense ratio.malabargold wrote:Fidelity has far more content, and better help with longer hours.
Vanguard has offered very competitive investment products, and year by year
Fidelity is approaching Vanguard's low cost options, not only with Spartan, but
with comission-free ishares.
Both are fine IMO.
Vanguard's customer service hours are 8AM to 10 PM weekdays and 9AM to 4PM Saturday.
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
Re: Fidelity or Vanguard
Vanguard has never cold called me to buy an investment. A Fidelity agent did so 4 years ago. It was an inappropriate annuity product. Maybe this was a rogue agent. He didn't seem to get the message immediately which I don't understand because I can be very abrupt with unwanted sales calls. It is a lot easier to get low cost funds through Vanguard and many more funds are low cost. You won't get a rogue call to purchase anything from Vanguard.
I only dealt with Fidelity because several years ago Vanguard required a third party to be involved in a solo 401k. That is no longer required. I like the ownership structure of Vanguard better.
I don't like all the advertising Vanguard is doing, but it is still the best mutual fund company around. You may find one or two fund companies with slightly lower expense ratios for a few funds that are used to attract customers in the hope of the customers buying higher cost products. I will stick with Vanguard.
I only dealt with Fidelity because several years ago Vanguard required a third party to be involved in a solo 401k. That is no longer required. I like the ownership structure of Vanguard better.
I don't like all the advertising Vanguard is doing, but it is still the best mutual fund company around. You may find one or two fund companies with slightly lower expense ratios for a few funds that are used to attract customers in the hope of the customers buying higher cost products. I will stick with Vanguard.
Re: Fidelity or Vanguard
I guess I am not understanding the question. You now have accounts at both places so you have experience at both places. Well what has been your experience?
Re: Fidelity or Vanguard
bingo. i swapped all my vanguard accounts to fidelity and couldn't be happier. fido has the better website, apps, tools, etc it's not even in the same ballpark. any brokerage can hold vanguard etfs so u don't have to limit your account to vanguard. i've heard good things about schwab too. if i get worried that i'm holding too much of my assets in one place; i'll diversify to schwab.jjaster7 wrote:I think Vanguard has better products, and Fidelity has better service. Holding Vanguard ETFs in a Fidelity account you get the best of both.
does vanguard even allow you have to have funds and stocks in the same account yet? they didn't several years ago, which was very annoying.
fidelity lets u buy/sell many ishares etfs commission free if u are worried about that. i prefer vanguard etfs and buy in several thousand $ chunks so the commission is negligible. but, it's nice that i can sell a vanguard etf then buy the equivalent ishares etf for free or vice versa for tax loss harvesting.
Re: Fidelity or Vanguard
What is Fidelity earning from this transaction? Do they get a cut on expenses somehow?gpburdell wrote:bingo. i swapped all my vanguard accounts to fidelity and couldn't be happier. fido has the better website, apps, tools, etc it's not even in the same ballpark. any brokerage can hold vanguard etfs so u don't have to limit your account to vanguard.jjaster7 wrote:I think Vanguard has better products, and Fidelity has better service. Holding Vanguard ETFs in a Fidelity account you get the best of both.
Re: Fidelity or Vanguard
They do now with the upgraded accounts. It's one account for brokerage and Vanguard funds.gpburdell wrote:jjaster7 wrote: does vanguard even allow you have to have funds and stocks in the same account yet? they didn't several years ago, which was very annoying.
Re: Fidelity or Vanguard
I also hold V funds in my Fido acocunts. As long as you aren't buying on a regular basis ($75 a crack), it's a good situation.gpburdell wrote:bingo. i swapped all my vanguard accounts to fidelity and couldn't be happier. fido has the better website, apps, tools, etc it's not even in the same ballpark. any brokerage can hold vanguard etfs so u don't have to limit your account to vanguard. i've heard good things about schwab too. if i get worried that i'm holding too much of my assets in one place; i'll diversify to schwab.jjaster7 wrote:I think Vanguard has better products, and Fidelity has better service. Holding Vanguard ETFs in a Fidelity account you get the best of both.
PS - if you go the ETF route, the fee is about $8
Last edited by feh on Thu Feb 05, 2015 2:03 pm, edited 1 time in total.
Re: Fidelity or Vanguard
Call me paranoid but I have accounts at both to mitigate risk.
Re: Fidelity or Vanguard
Vanguard is good and very safe.
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Re: Fidelity or Vanguard
We have accounts at both. I prefer Fidelity due to better service.
Re: Fidelity or Vanguard
Lots of baby photos nowadays in their ads with big eyes. <- baby photo.SGM wrote:I don't like all the advertising Vanguard is doing, ...
I have accounts at both. Some things that Fidelity has just do not matter at all, such as research and more content.
Here is a scenario where you might want to have accounts at both:
On Monday, the stock market drops 5%, so at Fidelity you exchange from FSITX (total bond index) into FSTVX (total US stock index).
On Tuesday, stock market goes back up 5%, but you cannot exchange from FSTVX to FSITX because of the early redemption fee, so you use your Vanguard account and exchange from VTSAX into VBTLX.
Use cannot use ETFs in a single account either because you will get caught free-riding.
If you don't think something like this will ever happen, look at the first two weeks of August 2011.