Updated 2026-03-20
Fidelity vs Betterment 401(k) Comparison
Compare Fidelity Investments (#1, 9.5/10) and Betterment at Work (#20, 6.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Fidelity | Betterment |
|---|---|---|
| Overall Score | 9.5/10 | 6.7/10 |
| Rank | #1 | #20 |
| AUM | $4.5 trillion | $45 billion |
| Participants | 43 million | 400,000 |
| Plan Sponsors | 23,000+ | 1,500+ |
| Founded | 1946 | 2010 |
Ratings Comparison
| Category | Fidelity | Betterment |
|---|---|---|
| Fees & Costs | 4.9/5 | 4.0/5 |
| Investment Options | 4.9/5 | 3.2/5 |
| Customer Service | 4.8/5 | 4.0/5 |
| Mobile App | 4.7/5 | 4.4/5 |
Fee Comparison
| Fee Type | Fidelity | Betterment |
|---|---|---|
| Admin Fees | $0 - varies by plan | $150/month + $6/employee |
| Expense Ratios | 0.00% - 0.75% | 0.03% - 0.15% |
| Trading Fees | $0 for stocks/ETFs | $0 |
| Advisory Fees | 0.35% - 1.0% | Included in platform fee |
Fidelity Strengths
- Zero expense ratio index funds (FZROX, FZILX)
- Industry-leading mobile app and online platform
- 24/7 customer service with dedicated retirement specialists
- Extensive investment options including BrokerageLink
Betterment Strengths
- Fully automated portfolio management
- Tax-loss harvesting and tax-smart strategies
- Clean, modern user interface
- Low-cost ETF portfolios
Rollover, Loans & Withdrawals
| Feature | Fidelity | Betterment |
|---|---|---|
| Rollover Platform | NetBenefits | Betterment App |
| Loans Available | Yes | No |
| Withdrawal Methods | Online via NetBenefits, Phone (800-343-3548), Fidelity branch offices | Online via Betterment app, Email support |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Fidelity if you want:
- Large employers
- Cost-conscious investors
- Self-directed investors
- Solo 401(k) seekers
Choose Betterment if you want:
- Tech companies
- Startups
- Hands-off investors
- ESG-conscious employers
Our Verdict: Fidelity vs Betterment
Fidelity Investments wins this comparison with a score of 9.5/10 vs 6.7/10. Fidelity excels with zero expense ratio index funds (fzrox, fzilx), making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Fidelity vs Betterment: Complete 401(k) Comparison for 2026
Choosing between Fidelity Investments and Betterment at Work for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Betterment is known for robo-advisor. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Betterment's 0.03% - 0.15%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Betterment has $45 billion AUM and 400,000 participants.
Key Differences: Fidelity vs Betterment
When comparing Fidelity and Betterment, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), while Betterment stands out for fully automated portfolio management. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Fidelity's customer service rating is 4.8/5 compared to Betterment's 4.0/5. For mobile experience, Fidelity scores 4.7/5 while Betterment scores 4.4/5.
Which Provider is Right for You?
Choose Fidelity if you prioritize large employers. Choose Betterment if you're looking for tech companies. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Fidelity and Betterment provider pages.
Frequently Asked Questions
Fidelity Investments scores higher in our 2026 rankings with 9.5/10. Fidelity is best for large employers, while Betterment is best for tech companies. The right choice depends on your employer's plan and your priorities.
Fidelity charges expense ratios of 0.00% - 0.75% with admin fees of $0 - varies by plan. Betterment charges 0.03% - 0.15% expense ratios with admin fees of $150/month + $6/employee. Fidelity's fees rating is 4.9/5 compared to Betterment's 4.0/5.
Yes, you can roll over between Fidelity and Betterment. Fidelity uses NetBenefits for rollovers, while Betterment uses Betterment App. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Fidelity offers 401(k) loans. Betterment does not offer 401(k) loans.
Fidelity scores 4.9/5 for investment options, while Betterment scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Fidelity's investment options include Index Funds, Target Date Funds, Mutual Funds. Betterment offers ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios.
For small businesses, consider plan minimums and per-participant costs. Fidelity is best for large employers, cost-conscious investors, self-directed investors, solo 401(k) seekers. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Compare admin fees: Fidelity charges $0 - varies by plan vs Betterment's $150/month + $6/employee.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-20