Updated 2026-03-20

Vanguard vs Morgan Stanley 401(k) Comparison

Compare Vanguard (#2, 9.3/10) and Morgan Stanley at Work (#19, 6.8/10) side by side across fees, ratings, features, and investment options.

Overall Comparison

FeatureVanguardMorgan Stanley
Overall Score9.3/106.8/10
Rank#2#19
AUM$8.6 trillion$6.2 trillion
Participants32 million6 million
Plan Sponsors5,600+15,000+
Founded19751935

Ratings Comparison

CategoryVanguardMorgan Stanley
Fees & Costs5.0/53.0/5
Investment Options4.5/54.5/5
Customer Service4.2/54.1/5
Mobile App4.0/54.0/5

Fee Comparison

Fee TypeVanguardMorgan Stanley
Admin Fees$0 - $60/yearVaries by plan size and services
Expense Ratios0.03% - 0.50%0.03% - 1.5%
Trading Fees$0 for Vanguard funds$0 for stocks/ETFs via E*Trade
Advisory Fees0.30%0.50% - 1.5%

Vanguard Strengths

Morgan Stanley Strengths

Rollover, Loans & Withdrawals

FeatureVanguardMorgan Stanley
Rollover PlatformVanguard.comMorgan Stanley at Work Portal
Loans AvailableYesYes
Withdrawal MethodsOnline via Vanguard.com, Phone (800-523-1188)Online via Morgan Stanley portal, Phone (800-869-3326), Through Morgan Stanley financial advisor, Branch office visit
Distribution OptionsLump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRALump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA, Required Minimum Distributions

Which Should You Choose?

Choose Vanguard if you want:

  • Buy-and-hold investors
  • Cost-minimizers
  • Index fund believers
  • Long-term planners

Choose Morgan Stanley if you want:

  • Companies with stock plans
  • Employees wanting full brokerage access
  • High-net-worth participants
  • Self-directed traders

Our Verdict: Vanguard vs Morgan Stanley

Vanguard wins this comparison with a score of 9.3/10 vs 6.8/10. Vanguard excels with lowest expense ratios in the industry, 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 Vanguard Review Full Morgan Stanley Review

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Vanguard vs Morgan Stanley: Complete 401(k) Comparison for 2026

Choosing between Vanguard and Morgan Stanley at Work for your 401(k) is an important decision that affects your retirement savings. Vanguard offers lowest costs while Morgan Stanley is known for wealth management. In terms of fees, Vanguard charges 0.03% - 0.50% expense ratios compared to Morgan Stanley's 0.03% - 1.5%. Vanguard manages $8.6 trillion in assets and serves 32 million participants, while Morgan Stanley has $6.2 trillion AUM and 6 million participants.

Key Differences: Vanguard vs Morgan Stanley

When comparing Vanguard and Morgan Stanley, consider their core strengths: Vanguard excels with lowest expense ratios in the industry, while Morgan Stanley stands out for access to morgan stanley financial advisors. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Vanguard's customer service rating is 4.2/5 compared to Morgan Stanley's 4.1/5. For mobile experience, Vanguard scores 4.0/5 while Morgan Stanley scores 4.0/5.

Which Provider is Right for You?

Choose Vanguard if you prioritize buy-and-hold investors. Choose Morgan Stanley if you're looking for companies with stock plans. 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 Vanguard and Morgan Stanley provider pages.

Frequently Asked Questions

Vanguard scores higher in our 2026 rankings with 9.3/10. Vanguard is best for buy-and-hold investors, while Morgan Stanley is best for companies with stock plans. The right choice depends on your employer's plan and your priorities.

Vanguard charges expense ratios of 0.03% - 0.50% with admin fees of $0 - $60/year. Morgan Stanley charges 0.03% - 1.5% expense ratios with admin fees of Varies by plan size and services. Vanguard's fees rating is 5.0/5 compared to Morgan Stanley's 3.0/5.

Yes, you can roll over between Vanguard and Morgan Stanley. Vanguard uses Vanguard.com for rollovers, while Morgan Stanley uses Morgan Stanley at Work Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.

Vanguard offers 401(k) loans. Morgan Stanley offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.

Vanguard scores 4.5/5 for investment options, while Morgan Stanley scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Vanguard's investment options include Index Funds, Target Date Funds, Mutual Funds. Morgan Stanley offers Mutual Funds, Target Date Funds, Index Funds.

For small businesses, consider plan minimums and per-participant costs. Vanguard is best for buy-and-hold investors, cost-minimizers, index fund believers, long-term planners. Morgan Stanley is best for companies with stock plans, employees wanting full brokerage access, high-net-worth participants, self-directed traders. Compare admin fees: Vanguard charges $0 - $60/year vs Morgan Stanley's Varies by plan size and services.

Pavlo Pyskunov

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