Is Vanguard cheaper than Fidelity?

Is Vanguard cheaper than Fidelity?


I am looking for a long-term investment vehicle outside of a tax-advantaged account. I may make periodic contributions using a dollar averaging strategy. I would also like to know how best to compare similar investment vehicles in the future.

After reading an article comparing FZROX to VTI, I realized there is more to the comparison than just fees. Aspects such as index construction, fee offsets, tax efficiency and trust should also be taken into account. I’m sure there are other factors as well. Here is my cursory comparison.

FNILX is a mutual fund, while VOO is an ETF, though I’m unclear how much difference this distinction will make with respect to returns, considering that both attempt to track the S&P 500 (and thus have a similar construction, more or less I assume.)

FrankRizzoFirst I will answer your Trust question , as it is the easiest. Fidelity would close the ZERO fund series before they increase the expense ratio. Fidelity already offers the same funds with a non-zero expense ratio – they launched the ZERO funds specifically for target investors who want a zero expense fund.

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Sixth place goes to JP Morgan Chase ($1.77 trillion) and seventh place to Bank of New York Mellon ($1.64 trillion). Eighth and ninth place go to AXA ($1.5 trillion) and Capital Group ($1.47 trillion). The top 10 is rounded off by Goldman Sachs, with assets under management of $1.38 trillion.

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The world’s 20 largest firms, led by BlackRock, have increased their assets by 6.7%, managing a total of $34.3 trillion, a far cry from the $20.5 trillion they managed in 2008.

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Despite boasting open architecture schemes, it is very difficult to find large banks that will go outside their commercial policies to sell the best product to the customer, if that means lower commission income.

Experts remind, moreover, that it’s not just about the fund the client wants. “If they sell it to you at the bank, you have to look at the type of participation they offer you, because other platforms may give access to cheaper classes,” they remind us.

Entities such as Evo Banco did give access to Vanguard funds through the Inversis platform, but with a very high minimum investment of 100,000 euros. Thus, it seems that the best formula for accessing the passive management giant’s products is to do so through automated managers such as Finizens. The client can also find these funds in Indexa Capital from 1,000 euros.

Ahorro Corporación’s platform handles more than 6,000 products from 17 international fund managers, while Renta 4 Fondtop has 4,100 funds. Meanwhile, clients can find more than 3,000 funds from 50 firms on SelfBank’s distribution platform, with no custody or maintenance fees, which most of them do charge. Here you can also find index funds and others from independent fund managers such as Gesconsult and Metagestión.


To say Vanguard is to talk about index funds, in the same way that we associate Windows with a computer. This is because this type of passive management fund was created by John Bogle, founder of Vanguard. It was in 1975 that he launched the first index fund, the Vanguard 500 Index Fund. Since then, this and other vehicles have been widely replicated by investors around the world… and this asset management firm manages more than $500 billion.

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Vanguard is one of the largest mutual fund managers, a status it has achieved primarily through its passive management offerings: index funds and exchange-traded funds (ETFs). In fact, it competes head-to-head with BlackRock for first place worldwide in terms of assets under management.

One of Vanguard’s hallmarks is its legal personality: unlike other firms in the financial sector, it is not a listed company. Its investment products belong to its unitholders. Vanguard only manages the capital. In other words, it is owned by the investors. That is why the interests of investors are particularly well represented.