Why We Upgraded Funds From Vanguard and Fidelity

Vanguard and Fidelity are two of the most popular investment firms in the world. Their offerings include mutual fund portfolios for long-term investors and robo-advisor platforms that automate investing.

Both brokers offer tax reports, margin information and internal rate of return, unrealized gains and losses, and portfolio analysis tools. But which one is best for you?

1. Fidelity offers more tax-free ETFs

In the world of mutual funds and ETFs, there are two main competitors for your retirement savings: Fidelity and Vanguard. Each of these companies has a lot to offer investors, but the key to choosing the right one for you is knowing your own unique financial goals and needs.

The first thing you should do when deciding between the two is check out the fees and expenses. As you likely know, these factors can significantly affect your returns over the long term.

Both Vanguard and Fidelity offer no-transaction-fee mutual funds that pay no taxes on distributions. This can help you build wealth faster and reduce your taxable income.

Those with larger portfolios can also benefit from tax-free bond funds. They invest at least 80 percent of their assets in investment-grade bonds that are exempt from federal income tax, so you can take advantage of higher current yields while avoiding the potential for capital gains and dividend taxes.

If you’re not a tax expert, we recommend you consult with a CPA or tax professional to determine which type of investments will be the best for you. Both Vanguard and Fidelity have a wide selection of low-cost index funds that meet this criteria.

In addition, both brokers offer access to online portfolio analysis and tax reports for their customers. These tools allow you to see your holdings in real time and track your internal rate of return, unrealized gains and tax impact.

Both firms also allow you to trade internationally, although trading on foreign markets can result in additional fees and commissions. Be sure to consider these costs and fees carefully before making a decision to trade abroad.

Finally, each firm offers a variety of account types. This includes individual and joint taxable accounts, traditional and Roth IRAs, small business retirement plans (SEP IRA, SIMPLE IRA and solo 401(k)), 529 plans, trusts and health savings accounts.

Both Vanguard and Fidelity offer a range of educational resources to help you learn about investing. This includes articles, commentary and research papers, videos and webcasts. You can also find guidance on retirement, industry news and financial planning.

2. Fidelity offers more investment options

Fidelity offers a wide variety of investment options, including IRAs, small business retirement accounts, trusts and 529 plans. It also has a great lineup of low-cost mutual funds and ETFs aimed at buy-and-hold investors.

Fidelity also has an extensive research library, a variety of educational resources and excellent customer service. It has a number of articles and videos that provide insight into topics such as investing, money management and portfolio analysis.

It’s easy to set up an account with Fidelity, and it’s accessible to people from all over the world. You’ll need to supply your name, address, Social Security number and employment information. Once you’re approved, you can start investing.

There are no minimums to open an account, and you can fund your account with as little or as much as you want. You’ll be able to trade stocks, ETFs, mutual funds and bonds.

In addition, you can invest in fractional shares of stock, a great way to start building your portfolio with minimal risk and maximum potential. With Fidelity’s Stocks by the SliceSM program, you can purchase partial shares of more than 7,000 stocks and ETFs for as little as $1 per share.

You can access all of your investments from your Fidelity account, making it a great option for beginner investors and those with limited time and funds to allocate. You can even use the Fidelity app to track your investments and see how your portfolio is performing, without having to open a separate trading account.

Moreover, you can transfer funds from other brokers or institutions to your Fidelity account free of charge. That’s a big plus for many customers, as it means they can keep all their assets with one broker and avoid any possible transaction fees.

If you’re looking for a broker with more options than Vanguard, Fidelity may be the better choice. While both brokers offer standard accounts, including individual and joint taxable accounts, IRAs (Roth and traditional), small business retirement accounts and trusts, Fidelity also has an extensive suite of robo-advisors.

Fidelity also offers a number of tools and calculators for analyzing portfolio performance and determining investment goals. It also has an excellent education section with a variety of articles, videos and webinars. In addition, it has a number of life stage planning tools for things like marriage and divorce, college costs and other financial concerns.

3. Fidelity offers more customer service

Fidelity is a good choice for investors who want a one-stop shop that provides an array of commission-free stock, ETF, mutual fund, and options trades. The company also has a wealth of research available through its StarMine website and daily market updates.

It also offers a wide range of customer service options, including live chat and phone support. You can even get personalized help from virtual assistants, who can answer simple queries and explain account details.

With over 200 investment branches across the country, you can also drop in for face-to-face support if needed. The company employs over 28,000 client-serving employees, including financial advisers and investment analysts.

The firm also offers an array of educational resources, ranging from videos and podcasts to in-depth articles on retirement planning, personal finance, and market cycles. You can even learn how to manage your own portfolio from their online Learning Center.

If you’re new to the brokerage business, Fidelity makes it easy to open a new account. Just complete a few forms, including your mailing address and Social Security number. You’ll also need to submit employment information.

You can earn a Series 7 license to work as a Fidelity broker, and there are a variety of opportunities for career growth at the firm. In addition to learning new skills, you’ll get the opportunity to see firsthand what it’s like to support clients.

As a result, you’ll be better equipped to meet the needs of the company and its customers. You’ll be able to make a difference every day and help drive the firm’s overall performance.

In fact, Fidelity’s commitment to customer service has led it to become the most trusted brokerage in the U.S., according to IBD. This is due to the quality of its customer care and its focus on retaining and attracting top talent.

For example, the firm recently announced a tuition-free program for about 18,000 customer service representatives. The move is designed to attract new talent to the company and boost customer satisfaction. The program is part of the company’s broader “voice of the client” program, which focuses on improving customer retention and net new sales.

4. Fidelity offers more educational resources

Whether you’re an active stock trader, an experienced investor or simply looking to learn more about investing, Fidelity offers a wide range of tools for you. From financial data to news and reports, there are plenty of free resources available.

Fidelity also provides a large selection of no-transaction-fee funds and a variety of retirement planning tools. Moreover, it has a strong reputation for providing quality customer service.

The company’s educational offerings are some of the best in the industry, offering a wealth of articles and videos, webinars, and live events. In addition, Fidelity’s learning center includes short courses designed for new investors and seasoned traders alike.

For employees, education is a vital part of their career development. In fact, studies show that associates with higher degrees are 3.5 times more likely to stay with the company and seven times more likely to move up in management.

In order to encourage employees to pursue higher education, Fidelity offers a Fully Funded Undergraduate Degree program that pays for up to four years of undergraduate college tuition, books and fees. The company claims this benefit will increase retention, enhance employee mobility and cut down on student debt while advancing the long-term financial well-being of its employees.

Moreover, Fidelity’s tuition reimbursement program will cover up to 90 percent of qualified expenses for associates who take part in a work-related degree or certificate program, subject to a $10,000 maximum. Those benefits are a valuable way for Fidelity to attract and retain top talent.

Additionally, Fidelity offers a number of student loan forgiveness programs and employee debt repayment benefits to help employees manage their debt while working. Its student loan program has eliminated more than $67 million in principal and $31 million in interest payments to date.

Similarly, Fidelity’s employee benefits include tuition reimbursement and matching gifts for employees. Both programs are intended to foster professional development.