Fidelity vs Principal 401(k) Comparison

Compare Fidelity Investments (#1, 9.5/10) and Principal Financial (#6, 8.3/10) side by side across fees, ratings, features, and investment options.

Overall Comparison

FeatureFidelityPrincipal
Overall Score9.5/108.3/10
Rank#1#6
AUM$4.5 trillion$700 billion
Participants43 million6 million
Plan Sponsors23,000+46,000+
Founded19461879

Ratings Comparison

CategoryFidelityPrincipal
Fees & Costs4.9/53.5/5
Investment Options4.9/53.8/5
Customer Service4.8/54.2/5
Mobile App4.7/53.9/5

Fee Comparison

Fee TypeFidelityPrincipal
Admin Fees$0 - varies by plan$1,500 - $5,000/year for small plans
Expense Ratios0.00% - 0.75%0.25% - 1.5%
Trading Fees$0 for stocks/ETFsVaries
Advisory Fees0.35% - 1.0%0.40% - 1.0%

Fidelity Strengths

Principal Strengths

Which Should You Choose?

Choose Fidelity if you want:

  • Large employers
  • Cost-conscious investors
  • Self-directed investors
  • Solo 401(k) seekers

Choose Principal if you want:

  • Small businesses
  • Bundled benefit seekers
  • Companies wanting insurance integration

Our Verdict: Fidelity vs Principal

Fidelity Investments wins this comparison with a score of 9.5/10 vs 8.3/10. 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.

Full Fidelity Review Full Principal Review

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Fidelity vs Principal: Complete 401(k) Comparison for 2026

Choosing between Fidelity Investments and Principal Financial for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Principal is known for small business focus. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Principal's 0.25% - 1.5%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Principal has $700 billion AUM and 6 million participants.

Key Differences: Fidelity vs Principal

When comparing Fidelity and Principal, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), while Principal stands out for excellent for small business 401(k) plans. Both providers offer comprehensive investment options including target-date funds, index funds, and managed accounts. Fidelity's customer service rating is 4.8/5 compared to Principal's 4.2/5. For mobile experience, Fidelity scores 4.7/5 while Principal scores 3.9/5.

Which Provider is Right for You?

Choose Fidelity if you prioritize large employers. Choose Principal if you're looking for small businesses. 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 Principal provider pages.