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For certain index funds, Fidelity is now lower than Vanguard. As of a few months ago, their 500 index and total market index funds are 0.045% compared to vangu
by dmoy 10y ago
For certain index funds, Fidelity is now lower than Vanguard. As of a few months ago, their 500 index and total market index funds are 0.045% compared to vanguard at 0.05%.
Not much of a difference, but it was enough to prompt me to shift my auto deposits from one to the other (still have stuff in both).
- justin66 10y agoSince perryh2 mentioned his 401k, I'll point out that you can't necessarily assume too much as far as the respective branding when you're talking about basis points on these funds from the various companies. The institutional funds that some 401ks carry can be cheaper than what's available to the general public. I'm pretty sure the Vanguard S&P 500 fund in my 401k is at 0.03%. The government employee Thrift Savings Plan's C fund charges 0.029% for an S&P 500 fund, managed by Blackrock, but I don't think you'll get that as a member of the general public. I'm sure you could find Fidelity and other funds in similar situations. This is all somewhat relevant since those of us in the US can contribute many more tax-free dollars to our 401ks than our IRAs, sadly.
- twblalock 10y agoIt's also worth noting that Vanguard's index funds are usually offered to the general public in two share classes: the "Investor" shares, and the "Admiral" shares. The Admiral shares have lower expense ratios, and generally require a $10k minimum investment -- down from something like $50k several years ago. Some of Vanguard's funds have corresponding ETFs, which hold the exact same investments the funds do, and usually offer the low expense ratio of the Admiral fund shares with no minimum investment.