Table of Contents
Fidelity and Vanguard are the two largest providers of mutual funds and index funds. Vanguard is famous for its client-owned structure and low-cost index investing, while Fidelity excels in customer service, web layout, and zero-fee mutual fund offerings.
Comparison
| Feature | Fidelity | Vanguard |
|---|---|---|
| Fractional Shares | Yes (starts at $1) | Limited to Vanguard ETFs |
| Zero-Fee Funds | Yes (Fidelity ZERO funds) | No (Very low fees, but not 0%) |
| Platform Interface | Modern / Easy | Traditional / Dated |
Verdict
Fidelity is the overall winner for retail investors due to its superior user experience, fractional shares, and zero-fee mutual funds. Vanguard remains excellent for buy-and-hold investors looking to park capital directly in traditional Vanguard mutual funds.
