Author Topic: Vanguard VS Fidelity  (Read 3035 times)

FinancialFrida

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Vanguard VS Fidelity
« on: February 14, 2015, 09:22:18 PM »
My husband and I currently a joint brokerage account, and each have a Roth IRA with Fidelity.  I'm looking to overhaul our investment strategy, and have been reading a couple of books by William Bernstein and his recommendations to use primarily indexed funds.  Since I'm looking to start over on my portfolio, I was also looking into if it was worth switching to Vanguard.  Despite having had investments in one account or another for several years, I'm pretty new to actually figuring out how everything works.

Here's my question, when I look at the expense ratios on Fidelity funds and similar ones from Vanguard, they are the same for almost all of them.  But I've heard from so many sources that Vanguard has lower fees.  Is there something else I need to look at for the total fees?  Or are the fees the close/the same for most funds between Vanguard and Fidelity?  If the fees are similar, I have no desire to go through the hassle of starting new accounts, but if it will make a difference, I want to do it now while I'm really looking at what I want in my portfolio.

Any input from more experienced investors would be appreciated :-).

seattlecyclone

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Re: Vanguard VS Fidelity
« Reply #1 on: February 14, 2015, 09:50:07 PM »
Fidelity has a line of "Spartan" branded index funds that are very comparable to Vanguard funds. Stick with those funds (avoiding the more expensive actively-managed funds) and you'll have little need to switch to Vanguard.

FinancialFrida

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Re: Vanguard VS Fidelity
« Reply #2 on: February 14, 2015, 09:54:01 PM »
Thanks seattlecyclone, these are the ones I was looking at switching to (I'm currently in mostly actively managed funds :-( ).  I was just wondering if there were some sort of hidden fees or something I wasn't aware of.

Tyler

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Re: Vanguard VS Fidelity
« Reply #3 on: February 14, 2015, 10:31:47 PM »
Vanguard is a fine company but there other good ones as well.  I've used Fidelity for years and have had nothing but good experiences. 

As Seattlecyclone mentioned, the Spartan funds are basically equivalent to the Vanguard index options.  There's no catch -- the fees are competitive and they're also passive indexes so you're not missing out on anything.  And if you really like a Vanguard fund for some reason, you can absolutely buy it through Fidelity.  I own a good chunk of VTI.  Look out for any additional transaction fees (they're often waived for in-house funds), but if you only trade rarely they're really not an issue especially on the ETFs.


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