Vanguard vs Principal 401(k) Comparison
Compare Vanguard (#2, 9.3/10) and Principal Financial (#6, 8.3/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Vanguard | Principal |
|---|---|---|
| Overall Score | 9.3/10 | 8.3/10 |
| Rank | #2 | #6 |
| AUM | $8.6 trillion | $700 billion |
| Participants | 32 million | 6 million |
| Plan Sponsors | 5,600+ | 46,000+ |
| Founded | 1975 | 1879 |
Ratings Comparison
| Category | Vanguard | Principal |
|---|---|---|
| Fees & Costs | 5.0/5 | 3.5/5 |
| Investment Options | 4.5/5 | 3.8/5 |
| Customer Service | 4.2/5 | 4.2/5 |
| Mobile App | 4.0/5 | 3.9/5 |
Fee Comparison
| Fee Type | Vanguard | Principal |
|---|---|---|
| Admin Fees | $0 - $60/year | $1,500 - $5,000/year for small plans |
| Expense Ratios | 0.03% - 0.50% | 0.25% - 1.5% |
| Trading Fees | $0 for Vanguard funds | Varies |
| Advisory Fees | 0.30% | 0.40% - 1.0% |
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
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Which Should You Choose?
Choose Vanguard if you want:
- Buy-and-hold investors
- Cost-minimizers
- Index fund believers
- Long-term planners
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Our Verdict: Vanguard vs Principal
Vanguard wins this comparison with a score of 9.3/10 vs 8.3/10. 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.
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Vanguard vs Principal: Complete 401(k) Comparison for 2026
Choosing between Vanguard and Principal Financial for your 401(k) is an important decision that affects your retirement savings. Vanguard offers lowest costs while Principal is known for small business focus. In terms of fees, Vanguard charges 0.03% - 0.50% expense ratios compared to Principal's 0.25% - 1.5%. Vanguard manages $8.6 trillion in assets and serves 32 million participants, while Principal has $700 billion AUM and 6 million participants.
Key Differences: Vanguard vs Principal
When comparing Vanguard and Principal, consider their core strengths: Vanguard excels with lowest expense ratios in the industry, 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. Vanguard's customer service rating is 4.2/5 compared to Principal's 4.2/5. For mobile experience, Vanguard scores 4.0/5 while Principal scores 3.9/5.
Which Provider is Right for You?
Choose Vanguard if you prioritize buy-and-hold investors. 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 Vanguard and Principal provider pages.