Vanguard funds in Fidelity account (2024)

I agree. Switching to ETFs is worth considering.

I buy Fidelity funds at Fidelity and Vanguard funds at Vanguard.

bwharper78 wrote: ↑Sat Aug 26, 2023 5:20 amI have a traditional and Roth IRA with Fidelity. I am currently investing in Vanguard index funds through that account. Is there any advantage to moving the IRAs to an actual Vanguard account?

The better choice is probably to stay at Fidelity and use Fidelity mutual funds which are just as good as Vanguard mutual funds. Or stay at Fidelity and use Vanguard ETFs.

Link to Asking Portfolio Questions

retiredjg wrote: ↑Sat Aug 26, 2023 8:18 am

bwharper78 wrote: ↑Sat Aug 26, 2023 5:20 amI have a traditional and Roth IRA with Fidelity. I am currently investing in Vanguard index funds through that account. Is there any advantage to moving the IRAs to an actual Vanguard account?

The better choice is probably to stay at Fidelity and use Fidelity mutual funds which are just as good as Vanguard mutual funds. Or stay at Fidelity and use Vanguard ETFs.

Fidelity has a lot of junk funds. Probably meant to say use those Fidelity funds that are as good as the corresponding Vanguard funds.

rkhusky wrote: ↑Sat Aug 26, 2023 8:32 am

retiredjg wrote: ↑Sat Aug 26, 2023 8:18 am

bwharper78 wrote: ↑Sat Aug 26, 2023 5:20 amI have a traditional and Roth IRA with Fidelity. I am currently investing in Vanguard index funds through that account. Is there any advantage to moving the IRAs to an actual Vanguard account?

The better choice is probably to stay at Fidelity and use Fidelity mutual funds which are just as good as Vanguard mutual funds. Or stay at Fidelity and use Vanguard ETFs.

Fidelity has a lot of junk funds. Probably meant to say use those Fidelity funds that are as good as the corresponding Vanguard funds.

You are correct. I meant the Fidelity index mutual funds that correspond to the Vanguard index funds the poster has.

However, I just assumed the poster was talking about things like total stock and 500 index, etc. That might not have been a correct assumption on my part. And there are some funds that Vanguard has that Fidelity has no good replacement for. Especially in the bond fund category.

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^ And, since these are not taxable accounts the OP can switch their existing holdings to the corresponding Fidelity index funds, so they'd not be stuck holding two similar funds in each category. Fidelity does not charge a transaction fee to sell Vanguard mutual funds, only to buy.

There's a list of what they have here:
https://www.fidelity.com/mutual-funds/f ... ndex-funds

jeffyscott wrote: ↑Sat Aug 26, 2023 10:04 am^ And, since these are not taxable accounts the OP can switch their existing holdings to the corresponding Fidelity index funds, so they'd not be stuck holding two similar funds in each category. Fidelity does not charge a transaction fee to sell Vanguard mutual funds, only to buy.

There's a list of what they have here:
https://www.fidelity.com/mutual-funds/f ... ndex-funds

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Would there or any penalty associated with moving the money from Fidelity to Vanguard? If not, why is that no the better option when vanguard seems to be universally accepted here.

bwharper78 wrote: ↑Sat Aug 26, 2023 11:47 amWould there or any penalty associated with moving the money from Fidelity to Vanguard?

No monetary penalty.

bwharper78 wrote: ↑Sat Aug 26, 2023 11:47 amIf not, why is that no the better option when vanguard seems to be universally accepted here.

Universally accepted here?

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bwharper78 wrote: ↑Sat Aug 26, 2023 11:47 am

jeffyscott wrote: ↑Sat Aug 26, 2023 10:04 am^ And, since these are not taxable accounts the OP can switch their existing holdings to the corresponding Fidelity index funds, so they'd not be stuck holding two similar funds in each category. Fidelity does not charge a transaction fee to sell Vanguard mutual funds, only to buy.

There's a list of what they have here:
https://www.fidelity.com/mutual-funds/f ... ndex-funds

Would there or any penalty associated with moving the money from Fidelity to Vanguard? If not, why is that no the better option when vanguard seems to be universally accepted here.

Vanguard is not universally accepted here. I am ok with their funds & ETFs (in fact they are pretty good), but do not want them to hold my accounts. I have had nothing but problems with Vanguard which originally held most of my taxable and tax deferred long term investments. I moved everything to Fidelity, and have a small position at Schwab. I've filed two FINRA complaints against Vanguard due to their incompetence & marketing practices. I'd call them the Walmart of retail investing, but that would disparage Walmart.

I'm delighted with Fidelity & Schwab.

bwharper78 wrote: ↑Sat Aug 26, 2023 11:47 amWould there or any penalty associated with moving the money from Fidelity to Vanguard? If not, why is that no the better option when vanguard seems to be universally accepted here.

There was a time when Vanguard was the clear choice for people interested in low cost index investing. But over the years, other fund families have greatly improved what they offer and Vanguard's customer service has declined.

I think Vanguard mutual funds are still fan favorites, but not by much. Vanguard ETFs and other fund families' ETFs seem to be on equal footing. And both Fidelity and Schwab have now pretty far surpassed Vanguard in customer service.

If you are happy at Fidelity, I would not risk switching to Vanguard. To avoid the transaction fees of using Vanguard mutual funds at Fidelity, either switch to Fidelity mutual funds or use Vanguard ETFs at Fidelity.

Link to Asking Portfolio Questions

Fidelity, Schwab and Vanguard get similar customer satisfaction scores. This has been a Vanguard dominated forum, so you are likely to see more complaints about Vanguard here. Fidelity Reddit sites see a lot of complaints about Fidelity. When looking at statistics you have to control for biases. And you need to consider the millions of customers that have no issues when reading anecdotal accounts.

https://www.jdpower.com/business/press- ... tion-study

bwharper78 wrote: ↑Sat Aug 26, 2023 5:20 amI have a traditional and Roth IRA with Fidelity. I am currently investing in Vanguard index funds through that account. Is there any advantage to moving the IRAs to an actual Vanguard account?

Are you paying $75 every time you add to your Vanguard funds held at Fidelity?

You can trade Vanguard index mutual funds with no commission or fee at ETrade nowadays. For a while ETrade was offering transfer bonuses but as part the ETrade/Morgan Stanley transition (same ETrade front-end, using MS on the backend), it seems the bonuses have gone dry.

The major brokerages are all good enough for me -- Fidelity, Schwab, ETrade, Merrill Edge, and even Vanguard. Maybe I have low standards! Anyway, they each have their quirks. Suggest you find one that meets your needs such as account types, fees, local branches, customer service, etc. I assume that not paying a $75 fee per Vanguard mutual fund purchase would be important to most Bogleheads