Index investors know value when they see it

Fidelity stock and bond index mutual funds and sector ETFs have lower expenses than the comparable Vanguard fund.

Think nobody matches Vanguard's expenses in index investing?

In a head-to-head comparison of our stock and bond index mutual funds and sector exchange-traded funds (ETFs) with comparable offerings from Vanguard:

  • 28 of 28 index funds and sector ETFs have lower expense ratios1 than their Vanguard counterparts, starting as low as .035%2. All 11 Fidelity sector ETFs are available commission-free for online purchase.
Fidelity Index Funds Vanguard Index Funds
Premium Share Class3 - $10K Minimum Investment Admiral Share Class3 - $10K Minimum Investment
Fund Name Comparison Based on Expense Ratio Fund Name
Fidelity® 500 Index Premium (FUSVX) .035% .040% Vanguard 500 Index Admiral (VFIAX)
Fidelity® Total Market Index Premium (FSTVX) .035% .040% Vanguard Total Stock Mkt Index Admiral (VTSAX)
Fidelity® Extended Market Index Premium (FSEVX) .070% .080% Vanguard Extended Market Index Admiral (VEXAX)
Fidelity® Large Cap Growth Index Prm (FSUPX) .050% .060% Vanguard Growth Index Admiral (VIGAX)
Fidelity® Large Cap Value Index Prm (FLCHX) .050% .060% Vanguard Value Index Admiral (VVIAX)
Fidelity® Mid Cap Index Premium (FSCKX) .050% .060% Vanguard Mid Cap Index Admiral (VIMAX)
Fidelity® Small Cap Index Premium (FSSVX) .050% .060% Vanguard Small Cap Index Admiral (VSMAX)
Fidelity® International Index Premium (FSIVX) .060% .070% Vanguard Developed Markets Index Admiral (VTMGX)
Fidelity® Global ex US Index Premium (FSGDX) .100% .110% Vanguard FTSE All-Wld ex-US Index Admiral (VFWAX)
Fidelity® Total Intl Index Premium (FTIPX) .100% .110% Vanguard Total Intl Stock Index Admiral (VTIAX)
Fidelity® Emerging Markets Index Premium (FPMAX) .130% .140% Vanguard Emerging Mkts Stock Index Admiral (VEMAX)
Fidelity® Real Estate Index Premium (FSRVX) .090% .120% Vanguard REIT Index Admiral (VGSLX)
Fidelity® US Bond Index Premium (FSITX) .045% .050% Vanguard Total Bond Market Index Admiral (VBTLX)
Fidelity® Short-Term Treasury Bd Index Prm (FSBAX) .060% .070% Vanguard Short-Term Govt Bd Index Admiral (VSBSX)
Fidelity® Intermediate Trs Bd Index Prem (FIBAX) .060% .070% Vanguard Interm-Tm Govt Bd Index Admiral (VSIGX)
Fidelity® Long-Term Treasury Bd Index Prem (FLBAX) .060% .070% Vanguard Long-Term Govt Bd Index Admiral (VLGSX)
Fidelity® U.S. Sustainability Index Fund (FENSX) .021% .022% Vanguard FTSE Social Index Fund (VFTSX)
Expense ratio information as of 8/1/17 for Fidelity, 7/28/17 for Vanguard.

Fidelity and Vanguard offer other share classes of these funds with different investment minimums and expense ratios.

The following funds have a short-term redemption fee for fee-eligible shares held less than 90 days: Fidelity Emerging Markets Index Fund,1.5%; Fidelity Total International Index Fund, 1.0%; and Fidelity Real Estate Index Fund, 0.75%.

Fidelity Sector ETFs Vanguard Sector ETFs
Fund Name Comparison Based on Expense Ratio Fund Name
Fidelity® MSCI Consumer Discret ETF (FDIS) .084% .100% Vanguard Consumer Discretionary ETF (VCR)
Fidelity® MSCI Consumer Staples ETF (FSTA) .084% .100% Vanguard Consumer Staples ETF (VDC)
Fidelity® MSCI Energy ETF (FENY) .084% .100% Vanguard Energy ETF (VDE)
Fidelity® MSCI Financials ETF (FNCL) .084% .100% Vanguard Financials ETF (VFH)
Fidelity® MSCI Health Care ETF (FHLC) .084% .100% Vanguard Health Care ETF (VHT)
Fidelity® MSCI Industrials ETF (FIDU) .084% .100% Vanguard Industrials ETF (VIS)
Fidelity® MSCI Information Tech ETF (FTEC) .084% .100% Vanguard Information Technology ETF (VGT)
Fidelity® MSCI Materials ETF (FMAT) .084% .100% Vanguard Materials ETF (VAW)
Fidelity® MSCI Telecommunication Svc ETF (FCOM) .084% .100% Vanguard Telecommunication Services ETF (VOX)
Fidelity® MSCI Utilities ETF (FUTY) .084% .100% Vanguard Utilities ETF (VPU)
Fidelity® MSCI Real Estate ETF (FREL) .084% .120% Vanguard REIT ETF (VNQ)
Expense ratio information as of 8/1/17 for Fidelity, 7/28/17 for Vanguard.

What is index investing?

Index products, such as an index fund or ETF, do not enlist a fund manager to actively select investments; instead, the vehicle buys a broad representation (or all) of the securities in an index.

An index fund is a mutual fund whose portfolio aims to match the risk and return of a market index, such as the S&P 500, and an ETF tracks an index and trades on the stock market like a security.

The goal is not to out-perform the index, but to mirror its activity.

Why invest in index funds and ETFs?

For the investor, index funds and ETFs offer a number of attractive features.

  • They generally have lower management and transaction costs than actively managed funds.
  • They typically do not have sales charges (loads) that many mutual funds have.
  • They offer broad diversification of investments within their given indexes, which helps to mitigate risk.
  • They have lower portfolio turnover than actively managed funds.

Fidelity has been managing index funds for almost 30 years, and we currently offer 21 Fidelity equity, fixed income, and hybrid index mutual funds; 13 Fidelity Freedom® Index Funds; and 18 Fidelity passive ETFs.

With highly competitive expenses, our product offering makes index investing even more compelling.

Thought leadership

Index funds and ETFs: Shop smart
Read a Fidelity Viewpoints® article on five key costs to consider when researching passively managed investments.

Expense ratios
See how fees relate to index-based products such as ETFs in this article from our Learning Center.

Next step

See our full lineup of Index funds and Sector ETFs