Fidelity Investments is one of the largest asset managers and financial services companies in the world, providing investment and retirement products to millions of clients. With its wide range of funds, research capabilities and technology platforms, Fidelity has become a leader in the investment industry. When looking at fidelity investments similar companies, there are a few top players that come to mind as direct competitors. In this article, we will compare Fidelity to companies like Vanguard, Charles Schwab and BlackRock to see how they stack up in areas like assets under management, offerings and fees. Understanding fidelity investments similar companies can help investors make a more informed choice when selecting an investment provider.
Fidelity vs. Vanguard: two titans of low-cost indexing
Both Fidelity and Vanguard are giants in the index mutual fund and ETF space. They compete heavily on having the lowest expense ratios for passive, index-tracking funds. Vanguard has long been associated with index funds as Jack Bogle founded the first index mutual fund available to the public. But Fidelity now offers comparable low-cost index funds and ETFs. In terms of assets under management, Fidelity manages around $4 trillion while Vanguard oversees more than $7 trillion globally. Both firms have continued to lower fees and expand their index fund lineups in recent years. One key difference is that Vanguard is structured as a mutual ownership model, owned by its funds, while Fidelity is privately owned.
Charles Schwab: leader in commissions-free trading
Charles Schwab, with around $7 trillion in client assets, is another major player that competes with Fidelity. Schwab rose to prominence by offering discounted stock trades at a time when commissions were still common. Today, Schwab allows for unlimited $0 stock, ETF and options trades, pressuring competitors like Fidelity to eliminate commissions. Schwab also offers banking services and management advice to retail investors. Its robo-advisor service has over $60 billion under management. While Schwab has a wide selection of mutual funds, its offerings do not yet match Fidelity or Vanguard in terms of assets or variety.
BlackRock: massive scale as an asset manager
In terms of assets under management, BlackRock is in a league of its own with over $10 trillion. This global investment manager offers services including index and active mutual funds, multi-asset strategies, alternatives, ETFs and advisory services. As primarily an asset manager, BlackRock has incredible scale but may not have the same visibility with retail investors as Fidelity and Schwab. However, its low-cost iShares ETFs compete with popular Fidelity funds. While BlackRock manages trillions for institutions, Fidelity excels more in the retail space by providing comprehensive brokerage and planning services.
Comparing fees, platforms and account options
When comparing fees and account options, Fidelity stands out for its $0 expense ratio index mutual funds and variety of zero-fee accounts. Fidelity ZERO funds compete aggressively with Vanguard and Schwab’s lowest cost offerings. Fidelity also offers commission-free ETFs and no-fee retail trading through its Active Trader Pro platform. For regular retail accounts, Fidelity assesses low fees and provides access to independent investment research. Overall, Fidelity matches up well with top competitors in areas like low-cost indexing while offering additional strengths in research, planning tools, trading platforms and account variety.
While other top investment companies like Vanguard, Schwab and BlackRock offer stiff competition in certain areas, Fidelity Investments holds its own as an investment leader with its combination of low fees, extensive research, technology platforms and diverse account options. Analyzing fidelity investments similar companies helps give perspective on Fidelity’s strengths as an investment firm.