Vanguard vs T. Rowe Price 401(k) Comparison
Compare Vanguard (#2, 9.3/10) and T. Rowe Price (#5, 8.5/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Vanguard | T. Rowe Price |
|---|---|---|
| Overall Score | 9.3/10 | 8.5/10 |
| Rank | #2 | #5 |
| AUM | $8.6 trillion | $1.3 trillion |
| Participants | 32 million | 10 million |
| Plan Sponsors | 5,600+ | 4,500+ |
| Founded | 1975 | 1937 |
Ratings Comparison
| Category | Vanguard | T. Rowe Price |
|---|---|---|
| Fees & Costs | 5.0/5 | 3.8/5 |
| Investment Options | 4.5/5 | 4.6/5 |
| Customer Service | 4.2/5 | 4.4/5 |
| Mobile App | 4.0/5 | 4.2/5 |
Fee Comparison
| Fee Type | Vanguard | T. Rowe Price |
|---|---|---|
| Admin Fees | $0 - $60/year | $0 - $50/year |
| Expense Ratios | 0.03% - 0.50% | 0.30% - 1.2% |
| Trading Fees | $0 for Vanguard funds | $0 for T. Rowe Price funds |
| Advisory Fees | 0.30% | 0.30% - 1.25% |
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
T. Rowe Price Strengths
- Excellent actively managed fund performance
- Best-in-class target date funds
- Strong research capabilities
- No-transaction-fee mutual fund platform
Which Should You Choose?
Choose Vanguard if you want:
- Buy-and-hold investors
- Cost-minimizers
- Index fund believers
- Long-term planners
Choose T. Rowe Price if you want:
- Active fund believers
- Target-date fund users
- Research-oriented investors
- Long-term holders
Our Verdict: Vanguard vs T. Rowe Price
Vanguard wins this comparison with a score of 9.3/10 vs 8.5/10. 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 T. Rowe Price: Complete 401(k) Comparison for 2026
Choosing between Vanguard and T. Rowe Price for your 401(k) is an important decision that affects your retirement savings. Vanguard offers lowest costs while T. Rowe Price is known for active management. In terms of fees, Vanguard charges 0.03% - 0.50% expense ratios compared to T. Rowe Price's 0.30% - 1.2%. Vanguard manages $8.6 trillion in assets and serves 32 million participants, while T. Rowe Price has $1.3 trillion AUM and 10 million participants.
Key Differences: Vanguard vs T. Rowe Price
When comparing Vanguard and T. Rowe Price, consider their core strengths: Vanguard excels with lowest expense ratios in the industry, while T. Rowe Price stands out for excellent actively managed fund performance. 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 T. Rowe Price's 4.4/5. For mobile experience, Vanguard scores 4.0/5 while T. Rowe Price scores 4.2/5.
Which Provider is Right for You?
Choose Vanguard if you prioritize buy-and-hold investors. Choose T. Rowe Price if you're looking for active fund believers. 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 T. Rowe Price provider pages.