|Founded||1946; 74 years ago (as Fidelity Management & Research)|
|Headquarters||Boston, Massachusetts, U.S.|
with regional offices in
Asia / Pacific:
|Products||Mutual funds |
Health Savings Account (HSA)
Collective Investment Trusts
|Total assets||US$6.7 trillion (total customer assets)|
Fidelity Investments Inc is a Boston-based mutual fund and financial services company and Vanguard's biggest competitor.
"It's what I would do if I were Fidelity...I don't see that there is a really good competitive response...a winning response (for Vanguard)." -Jack Bogle, October 2018 on Fidelity ZERO cost index funds 
In recent years Fidelity has been notable for offering the lowest cost mutual funds, the first and only zero expense ratio index funds, commission free ETFs, no investment minimums and one of the first brokers to offer partial share investing. Fidelity was also one of the first brokers to combine its Institutional Premium class funds with Retail class funds and did so more completely than competitors like Vanguard. This resulted in individual investors having access to funds with extremely low expense ratios, well below what is available to individual investors at Vanguard, even compared to the $3,000-minimum Admiral Class shares.
Boglehead-style investing at Fidelity
The building blocks of Boglehead-style investing are low-expense-ratio index mutual funds and/or ETFs. Fidelity offers the lowest cost index funds in the industry including 4 zero cost index funds and commission free ETFs.
Boglehead philosophy leverages low cost broad index funds. Fidelity has the lowest cost broad market index funds while Vanguard offers more narrow index funds and ETFs at higher costs (although not as many as Blackrock's iShares).
Here are some notes on how to do Boglehead style investing at Fidelity. Writers have striven for accuracy, but investors should verify information before taking action. Fidelity also provides a comparison of its funds to Vanguard.
Tools for Boglehead-style investing
- Fidelity offers the lowest expense ratios in the industry, well below Vanguard 
- Fidelity funds have higher tracking precision to their benchmarks than Vanguard funds (lower tracking error) 
- Fidelity offers 4 ZERO Index Funds with a 0.00% expense ratio, the Fidelity ZERO Total Market Index Fund and the Fidelity ZERO International Index Fund, Fidelity Large Cap ZERO Index Fund and Fidelity Extended Market ZERO Index Fund. These funds track proprietary Fidelity indexes.
- Fidelity offers commission free trades on individual stocks and ETFs
- Fidelity eliminated the minimum investment requirement on all its mutual funds and allows partial share investing of ETFs and stocks
- Fidelity no longer lists a charge for short-term sales of its funds; however, all ETF sales are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal.)
- Fidelity offers individual treasury bonds (both nominal and TIPS) at auction free of commission or any markup or fees if you place your orders online. There is no limit on account size. No separate account is needed. The minimum purchase is $1,000.
General Strategy for Boglehead-style investing
- In tax exempt accounts hold Fidelity index funds.
- In taxable accounts hold ETFs from iShares, Schwab, State Street or Vanguard and leverage Fidelity's partial share investing capability, which allows you to invest by dollar amount rather than number of shares. 
- This table shows the rough correspondence between Fidelity, Vanguard and Schwab mutual funds. The lowest expense ratios are in bold. In many cases they track different indexes so they are not precisely equivalent, however they are very similar. Bond funds have different durations and therefore interest risk. Other tickers can be found in the appendix to the press release.
|Fund Class||Fund Name||Ticker||ER||Index Tracked|
|Total US Stock Market||Fidelity ZERO Total Market Index Fund||FZROX||0.00%||Fidelity U.S. Total Investable Market Index|
|Fidelity Total Market Index Fund||FSKAX||0.015%||Dow Jones US Total Stock Market Index|
|iShares Core S&P Total U.S. Stock Market ETF||ITOT||0.03%||S&P Total Market Index|
|Schwab Total Stock Market Index Fund||SWTSX||0.03%||Dow Jones U.S. Total Stock Market Index|
|Vanguard Total Stock Market Index Fund||VTSAX||0.04%||CRSP Total Market Index|
|S&P 500||Fidelity 500 Index Fund||FXAIX||0.015%||S&P 500|
|Schwab 500 Index Fund||SWPPX||0.02%||S&P 550|
|Vanguard 500 Index Fund||VFIAX||0.04%||S&P 500|
|iShares Core S&P 500 ETF||IVV||0.04%||S&P 500|
|Extended Market||Fidelity Zero Extended Market Index Fund||FZIPX||0.00%||Fidelity U.S. Extended Investable Market Index|
|Fidelity Extended Market Index Fund||FSMAX||0.045%||Dow Jones U.S. Completion Total Stock Market Index |
|Vanguard Extended Market Index Fund||VEXAX||0.08%||S&P Completion Index|
|Mid Cap||Fidelity Mid Cap Index Fund||FSMDX||0.025%||Russell Mid Cap Index|
|Schwab US Mid Cap Index Fund||SWMCX||0.04%||Russell Mid Cap Index|
|Vanguard Mid Cap Index Fund||VIMAX||0.05%||CRSP US Mid Cap Index|
|iShares Core S&P Mid-Cap ETF||IJH||0.07%||S&P MidCap 400 Index|
|Small Cap||Fidelity Small Cap Index Fund||FSSNX||0.025%||Russell 2000 Index|
|Schwab US Small Cap Index Fund||SWSSX||0.04%||Russell 2000 Index|
|Vanguard Small Cap Index Fund||VSMAX||0.05%||CRSP US Small Cap Index Index |
|iShares Core S&P Small-Cap ETF||IJR||0.07%||S&P SmallCap 600 Index|
|Real Estate||Fidelity Real Estate Index Fund||FSRNX||0.07%||Dow Jones U.S. Select Real Estate Securities Index|
|Fidelity MSCI Real Estate Index ETF||FREL||0.084%||MSCI USA IMI Real Estate Index|
|Schwab U.S. REIT ETF||SCHH||0.07%||Dow Jones U.S. Select REIT Index|
|iShares Core U.S. REIT ETF||USRT||0.08%||FTSE NAREIT Equity REITS Index|
|Vanguard Real Estate Index Fund||VGSLX||0.12%||MSCI US Investable Market Real Estate 25/50 Index|
|Total International Stock Market||Fidelity ZERO International Index Fund||FZILX||0.00%||Fidelity Global ex US Index (excludes small caps)|
|Fidelity Total International Index Fund||FTIHX||0.06%||MSCI ACWI ex USA IMI Index|
|iShares Core MSCI Total International Stock ETF||IXUS||0.10%||MSCI ACWI ex USA IMI Index|
|Vanguard Total International Stock Index||VTIAX||0.11%||FTSE Global All Cap ex US Index|
|Developed Markets [note 1]||Fidelity International Index Fund||FSPSX||0.045%||MSCI EAFE Index (excludes small caps)|
|iShares Core MSCI International Developed Markets ETF||IDEV||0.05%||MSCI WORLD ex USA IMI Index|
|Schwab International Stock Index Fund||SWISX||0.06%||MSCI EAFE Index|
|Vanguard Developed Markets Index Fund||VTMGX||0.07%||FTSE Developed All Cap ex US Index|
|iShares Core MSCI EAFE||IEFA||0.08%||MSCI EAFE IMI Index|
|Emerging Markets||Fidelity Emerging Markets Index Fund||FPADX||0.08%||MSCI Emerging Markets Index (excludes small caps)|
|Schwab Emerging Markets ETF||SCHE||0.13%||FTSE Emerging Index|
|Vanguard Emerging Markets Index Fund||VEMAX||0.14%||FTSE Emerging Markets All Cap China A Inclusion Index|
|iShares Core MSCI Emerging Markets||IEMG||0.14%||MSCI Emerging Markets IMI Index|
|Short-Term Treasury||Fidelity Short-Term Treasury Bond Index Fund||FUMBX||0.03%||Bloomberg Barclays 1-5 Year U.S. Treasury Index|
|Schwab Short-Term Treasury ETF||SCHO||0.05%||Bloomberg Barclays US Treasury 1-3 Year Inde|
|Vanguard Short-Term Treasury Index Fund||VSBSX||0.07%||Bloomberg Barclays US Treasury 1–3 Year Bond Index|
|iShares 1-3 Year Treasury Bond ETF||SHY||0.15%||ICE U.S. Treasury 1-3 Year Bond Index|
|Intermediate-Term Treasury||Fidelity Intermediate Treasury Bond Index Fund||FUAMX||0.03%||Bloomberg Barclays 5-10 Year U.S. Treasury Bond Index|
|Schwab Intermediate-Term Treasury ETF||SCHR||0.05%||Bloomberg Barclays US Treasury 3-10 Year Index|
|Vanguard Intermediate-Term Treasury Index Fund||VSIGX||0.07%||Bloomberg Barclays US Treasury 3–10 Year Bond Index|
|iShares 3-7 Year Treasury Bond ETF||IEI||0.15%||ICE U.S. Treasury 3-7 Year Bond Index|
|iShares 7-10 Year Treasury Bond ETF||IEF||0.15%||ICE U.S. Treasury 7-10 Year Bond Index|
|TIPS||Fidelity Inflation-Protected Bond Index Fund||FIPDX||0.05%||Bloomberg Barclays U.S. TIPS Index|
|Schwab U.S. TIPS ETF||SCHP||0.05%||Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L)|
|Vanguard Inflation Protected Securities Fund||VAIPX||0.10% [note 2]||Not an index fund|
|iShares TIPS Bond ETF||TIP||0.20%||Bloomberg Barclays U.S. TIPS Index|
|Long-Term Treasury||Fidelity Long-Term Treasury Bond Index Fund||FNBGX||0.03%||Bloomberg Barclays US Long Treasury Bond Index|
|Vanguard Long-Term Treasury Index Fund||VLGSX||0.03%||Bloomberg Barclays U.S. Long Treasury Index|
|Schwab Long-Term U.S. Treasury ETF||SCHQ||0.05%||Bloomberg Barclays US Long Treasury Index|
|iShares 20+ Year Treasury Bond ETF||TLT||0.15%||ICE U.S. Treasury 20+ Year Bond Index|
|Aggregate Bond||Fidelity U.S. Bond Index Fund||FXNAX||0.025%||Bloomberg Barclays U.S. Aggregate Bond Index|
|Schwab U.S. Aggregate Bond Index Fund||SWAGX||0.04%||Bloomberg Barclays US Aggregate Bond Index|
|Vanguard Total Bond Market Index Fund||VBTLX||0.05%||Bloomberg Barclays U.S. Aggregate Float Adjusted Index|
|iShares Core U.S. Aggregate Bond ETF||AGG||0.05%||Bloomberg Barclays US Aggregate Bond Index|
|ex-US Aggregate Bond||Fidelity International Bond Index Fund||FBIIX||0.06%||Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Diversified Index (USD Hedged)|
|iShares Core International Aggregate Bond ETF||IAGG||0.09%||Bloomberg Barclays Global Aggregate ex USD 10% Issuer Capped (Hedged) Index|
|Vanguard Total International Bond Index Fund||VTABX||0.11%||Bloomberg Barclays Global Aggregate ex-USD Float-Adjusted Index (Hedged)|
|Target-date funds||Fidelity Freedom® Index Funds||Various||0.12%|
|Schwab Target Funds||Various||0.08%|
|Vanguard Target Retirement Funds||Various||0.13% - 0.15%|
|Fixed allocation funds||Fidelity Four-in-One Index Fund||FFNOX||0.11%||85/15 index fund|
|Vanguard LifeStrategy||VASIX, VSCGX, VSMGX, VASGX||0.11% - 0.14%||20/80 to 80/20 allocations|
|iShares Core Allocation ETFs||AOK, AOM, AOR, AOA||0.25%||30/70 to 80/20 allocations|
- FTSE classifies Korea as a developed market, while MSCI classifies it as emerging. Canada is not included in EAFE indexes.
- Admiral Shares class fund has a $50,000 minimum investment. Investor-class fund VIPSX has a 0.20% ER and a $3,000 minimum
ETFs at Fidelity
- This table shows the rough correspondence between Blackrock, Schwab ETFs, StateStreet and Vanguard that can be purchased commission free at Fidelity. In many cases they track different indexes so they are not precisely equivalent, however they are very similar. The lowest expense ratios are in bold, but keep in mind the importance of tax efficiency in a taxable account.[Note 1] ITOT followed by VTI are two of the most tax efficient funds you can hold in your taxable account.
TODO - Table of ETFs
HSA and ABLE Accounts
In these products - which are often abused with extremely high expenses - Fidelity has arguably the most compelling offering in the industry. You can use low cost Fidelity index funds in your HSA and ABLE accounts and Fidelity does not charge any additional fees.
- The fiscal year history of per share dividend and capital gains distributions from Fidelity, Vanguard, and Schwab index funds are available on spreadsheets published on the site blog. See Vanguard funds: per share distributions and Fidelity and Schwab index funds: per share distributions.
- "Bogleheads 2018 Jack Bogle & Bill Bernstein Fireside Chat". Vimeo. 2018. https://vimeo.com/channels/bogleheads/293765659.
- "Investing Ideas/Index Funds". Fidelity. https://www.fidelity.com/mutual-funds/investing-ideas/index-funds.
- Chong Li; Edward Tower; Rhona Zhang (March 26, 2019). "Vanguard versus Fidelity: Multidimensional Comparison of the Index Funds and ETFs of the Two Largest Mutual Fund Families". Economic Research Initiatives at Duke (ERID) Working Paper No. 283 (2019). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3361263., available at SSRN.
- "Index methodology". Fidelity. https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/Fidelity_mkt_cap_weighted_methodology.pdf.
- "Trading/Fractional Shares". Fidelity. https://www.fidelity.com/trading/fractional-shares.
- See, Dow Jones US Total Stock Market Indexes Literature.
- Vanguard also offers the Vanguard Russell 2000 ETF.
- Acheson, Leo (Oct 01, 2019). "Our 2019 Rankings of 11 Top HSA Providers". Morningstar. https://www.morningstar.com/articles/947613/our-2019-rankings-of-11-top-hsa-providers.
- Bogleheads® forum topic: , liberty53. Nov 11, 2018