Updated 2026-03-30
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
Rollover, Loans & Withdrawals
| Feature | Vanguard | T. Rowe Price |
|---|---|---|
| Rollover Platform | Vanguard.com | Individual.troweprice.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Vanguard.com, Phone (800-523-1188) | Online portal, Phone (800-225-5132) |
| Distribution Options | Lump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA |
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 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 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.
Frequently Asked Questions
Vanguard scores higher in our 2026 rankings with 9.3/10. Vanguard is best for buy-and-hold investors, while T. Rowe Price is best for active fund believers. 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. T. Rowe Price charges 0.30% - 1.2% expense ratios with admin fees of $0 - $50/year. Vanguard's fees rating is 5.0/5 compared to T. Rowe Price's 3.8/5.
Yes, you can roll over between Vanguard and T. Rowe Price. Vanguard uses Vanguard.com for rollovers, while T. Rowe Price uses Individual.troweprice.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Vanguard offers 401(k) loans. T. Rowe Price 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 T. Rowe Price scores 4.6/5. Both offer target-date funds, index funds, and managed accounts. Vanguard's investment options include Index Funds, Target Date Funds, Mutual Funds. T. Rowe Price offers Active 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. T. Rowe Price is best for active fund believers, target-date fund users, research-oriented investors, long-term holders. Compare admin fees: Vanguard charges $0 - $60/year vs T. Rowe Price's $0 - $50/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