Updated 2026-03-30
Fidelity vs Vanguard 401(k) Comparison
Compare Fidelity Investments (#1, 9.5/10) and Vanguard (#2, 9.3/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Fidelity | Vanguard |
|---|---|---|
| Overall Score | 9.5/10 | 9.3/10 |
| Rank | #1 | #2 |
| AUM | $4.5 trillion | $8.6 trillion |
| Participants | 43 million | 32 million |
| Plan Sponsors | 23,000+ | 5,600+ |
| Founded | 1946 | 1975 |
Ratings Comparison
| Category | Fidelity | Vanguard |
|---|---|---|
| Fees & Costs | 4.9/5 | 5.0/5 |
| Investment Options | 4.9/5 | 4.5/5 |
| Customer Service | 4.8/5 | 4.2/5 |
| Mobile App | 4.7/5 | 4.0/5 |
Fee Comparison
| Fee Type | Fidelity | Vanguard |
|---|---|---|
| Admin Fees | $0 - varies by plan | $0 - $60/year |
| Expense Ratios | 0.00% - 0.75% | 0.03% - 0.50% |
| Trading Fees | $0 for stocks/ETFs | $0 for Vanguard funds |
| Advisory Fees | 0.35% - 1.0% | 0.30% |
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
Vanguard Strengths
- Lowest expense ratios in the industry
- Investor-owned structure aligns interests
- Excellent target-date fund lineup (VTIVX series)
- Admiral Shares offer even lower costs at $3,000 minimum
Rollover, Loans & Withdrawals
| Feature | Fidelity | Vanguard |
|---|---|---|
| Rollover Platform | NetBenefits | Vanguard.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via NetBenefits, Phone (800-343-3548), Fidelity branch offices | Online via Vanguard.com, Phone (800-523-1188) |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA |
Which Should You Choose?
Choose Fidelity if you want:
- Large employers
- Cost-conscious investors
- Self-directed investors
- Solo 401(k) seekers
Choose Vanguard if you want:
- Buy-and-hold investors
- Cost-minimizers
- Index fund believers
- Long-term planners
Our Verdict: Fidelity vs Vanguard
Fidelity Investments wins this comparison with a score of 9.5/10 vs 9.3/10. 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.
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Fidelity vs Vanguard: Complete 401(k) Comparison for 2026
Choosing between Fidelity Investments and Vanguard for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Vanguard is known for lowest costs. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Vanguard's 0.03% - 0.50%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Vanguard has $8.6 trillion AUM and 32 million participants.
Key Differences: Fidelity vs Vanguard
When comparing Fidelity and Vanguard, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), while Vanguard stands out for lowest expense ratios in the industry. 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 Vanguard's 4.2/5. For mobile experience, Fidelity scores 4.7/5 while Vanguard scores 4.0/5.
Which Provider is Right for You?
Choose Fidelity if you prioritize large employers. Choose Vanguard if you're looking for buy-and-hold investors. 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 Vanguard provider pages.
Frequently Asked Questions
Fidelity Investments scores higher in our 2026 rankings with 9.5/10. Fidelity is best for large employers, while Vanguard is best for buy-and-hold investors. 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. Vanguard charges 0.03% - 0.50% expense ratios with admin fees of $0 - $60/year. Fidelity's fees rating is 4.9/5 compared to Vanguard's 5.0/5.
Yes, you can roll over between Fidelity and Vanguard. Fidelity uses NetBenefits for rollovers, while Vanguard uses Vanguard.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Fidelity offers 401(k) loans. Vanguard offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Fidelity scores 4.9/5 for investment options, while Vanguard scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Fidelity's investment options include Index Funds, Target Date Funds, Mutual Funds. Vanguard offers Index Funds, Target Date Funds, Mutual Funds.
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. Vanguard is best for buy-and-hold investors, cost-minimizers, index fund believers, long-term planners. Compare admin fees: Fidelity charges $0 - varies by plan vs Vanguard's $0 - $60/year.
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: 2026-03-30