Vanguard mutual funds are just as tax efficient as their ETFs - you can read a bit more about it on ETFs vs mutual funds wiki page, I would just keep everything at Fidelity and use ETFs instead of mutual funds in the taxable account, it really doesn't make that much of a difference - plenty of people use non Vanguard taxable accounts for Boglehead-style investing. If your mum really needs help then it is not a bad thing to work with an advisor, and Vanguard is probably the cheapest option for working with a real human-being(s). Additionally, their website is easier to use, and customer service is very good. New comments cannot be posted and votes cannot be cast. The account would be just to store extra savings and probably not touch it for a very long time, at the earliest I would use it in 5-10 years for a house down payment maybe.
Looking at picking one to go with.
Fidelity is generally regarded as having somewhat better customer service.
Ownership structure being a benefit of vanguard seems to be a frequently touted, but rarely consequential/real benefit. As someone who's worked there, what are some potential downsides you see to simply going to Fidelity and investing in those "ZERO" funds?
what sort of guidance are you talking about? Press question mark to learn the rest of the keyboard shortcuts. The specific vanguard patents expire soon so any advantage may be short lived.
you). Any real difference between them?
Fidelity boasts more than 250 branded mutual funds available to U.S. retail clients and 28 ETFs. I currently have all my investments (IRA, 401k, ESPP) at Fidelity. Too expensive. Conversely, maybe there are other assets at play and they want a lower risk profile than a larget date fund. I have been contacted exactly once, which was to inform me that my money that was in a MM fund waiting to be invested could be in a higher return fund without higher expenses by a quick setting change. The website is hands down better, and investments are easier to manage. Vanguard Vs Fidelity. Would you still choose these over an ETF for a taxable account?
I am interested in opening a brokerage account to do addition investing (in index funds) above and beyond retirement account contribution limits. Zero funds are fine options for something like an IRA though. Supposedly (can’t tell because it’s too new) Vanguard has better tracking error.
Most people think they do, but actually don't. Down the line she might gain the confidence to invest on her own, but if not she at least has a relationship with someone who is being paid to put her best interests first. I’m with Fidelity so I’m attracted to the ZERO index funds. I worked at Fidelity. Fidelity even offers term life insurance.
If you buy mutual funds fidelity charges you $75 which is insane.
OP - most people on this subreddit are going to suggest self managing assets through basic funds because that is the best way to reduce cost and increase investment return (all else equal). Vanguard and Fidelity are two of the largest asset management firms in the world.
If she got a similar service from Fidelity, where she has some guidance with an advisor, how much would their fees be?
It's easy for us all to say "target date" or "three fund portfolio" or "put it all in spy", but we're actively interested and educating ourselves about our investments.
However I feel Vanguard, as a client owned firm, is better aligned with client interests in the long run, https://www.investopedia.com/how-vanguard-patented-a-system-to-avoid-taxes-in-mutual-funds-4686985. Such annoyingly predictable and unhelpful gatekeeping.
I’m pitting Vanguard against Fidelity, and then breaking down all the Vanguard vs. Fidelity nuances you need to know to stretch your investment returns the farthest. So my mom needs something where she has some guidance. That’s for ETF. It was already basically free at 1.5 basis points a year and also has no minimum investment requirements. Fidelity ZERO Large Cap index vs Vanguard S&P 500 ETF. Whatever you feel better about. https://www.fidelity.com/fund-screener/compare.shtml#!&fIds=FNILX%2CVFIAX.
Fidelity ZERO Large Cap index vs Vanguard S&P 500 ETF. Vanguard or Fidelity offer many options for investors. Yeah but don’t all those ZERO funds only payout dividends once per year as opposed to quarterly? I use ITOT there. Press question mark to learn the rest of the keyboard shortcuts.
Echoing what the other user commented, she should probably just be using a target date retirement fund. Fidelity vs. Vanguard: In-Depth Comparison.
FNILX vs VOO. Both brokerages charge low fees and offer investment accounts for you and your family.
Really, we should be cheering her for wanting to get started investing. The tax advantages of vanguard seem quite overstated to me. Would ITOT be an ETF equivalent of FSKAX to hold in a taxable account? Fidelity brokerage is great. So you'd have to sell the zero fund(s) before you could transfer accounts.
However, on the Bogleheads wiki I read that " Fidelity mutual funds do not share the same structure that allows Vanguard mutual funds to avoid distributing capital gains, which may have tax consequences for investors. Asking someone with no financial knowledge to dump thousands of dollars into some fund could be asking a lot of them. If she pays 30 basis points, that's not the end of the world. Bogleheads are die-hard fans of Jack Bogle and index fund investing in general - Jack Bogle founded Vanguard, is the father of index funds and an all-around inspiration for people who want to engage in passive investments (generally stocks and bonds) for a long-term return that will beat active alternatives. Press J to jump to the feed. From what I have read, the issues with the Zero funds would be that they are proprietary and you can't transfer them to another firm.
It would not be an issue with a tax-advantaged account, but you could take a tax hit in a taxable account. Hi, very curious about your insights on Fidelity being too expensive. Looking at picking one to go with. salesman in disguise) for decades. Some info below. Why do you (or she) think she needs guidance?
It is much simpler to keep it all at fidelity for you at this point.
Vanguard was founded in 1975 by John Bogle and is the creator of the first index fund.
Bogleheads are die-hard fans of Jack Bogle and index fund investing in general - Jack Bogle founded Vanguard, is the father of index funds and an all-around inspiration for people who want to engage in passive investments (generally stocks and bonds) for a long-term return that will beat active alternatives. I would just keep everything at Fidelity and use ETFs instead of mutual funds in the taxable account, it really doesn't make that much of a difference - plenty of people use non Vanguard taxable accounts for Boglehead-style investing
Doesn’t make any difference. However, I like the Vanguard ETF index funds. So my mom needs something where she has some guidance. Yea, she needs it because I have no idea of how to get out of her annuity. Hola Revisando los fondos para elegir mi cartera me he dado cuenta que no he tenido en cuenta en ningún momento los de iShares.
Close enough to being the same since it is in an IRA (VFIAX is the mutual fund version of VOO). Vanguard vs Fidelity. I was planning to just open it at Fidelity for simplicity. Mutual funds result in slightly higher taxes than exchange traded funds. Press question mark to learn the rest of the keyboard shortcuts. Also, not quite as many holdings or as long of a track record as the traditional index funds Fidelity already had. Buenas, He comparado las rentabilidades anuales de los fondos MSCI World de Amundi y Vanguard frente al propio indice, y me llama la atención las diferencias en algunos años. Be sure to only use the 1 year or YTD views. Por ejemplo, el año 2017: Vanguard Global Stock Index Fund Investor EUR Acc.. I tend to believe that Vanguard is one step above Fidelity! Vanguard vs Fidelity: Who Are They?
ITOT is wonderful as well. Is Vanguard or Fidelity the better choice for investing your hard-earned dollars?