BlackRock vs. Vanguard vs. Fidelity: what’s the difference?
This review compares Vanguard, BlackRock, and Fidelity across fees, investment strategies, services, and overall approach, helping you choose the right fit for your financial goals.
Summary
BlackRock focuses on actively managed portfolios, institutional research, and risk management tools for high-net-worth individuals and institutional clients.
Vanguard is best known for its low-cost index funds and a passive investing approach, designed for long-term investors.
Fidelity offers a broad spectrum of services, from self-directed brokerage to full-service financial planning, catering to both novice and experienced investors.
Finding the right financial advisor can help you reach your investment goals.
Vanguard vs. BlackRock vs. Fidelity: What’s the difference?
| Feature | Vanguard | BlackRock | Fidelity |
|---|---|---|---|
| Feature | Vanguard | BlackRock | Fidelity |
| Pros | Low-cost funds; wide selection | Managed portfolios; active/passive mix | Research-driven; personalized plans; strong customer service |
| Cons | Basic platform; limited research | High fees; complex fee structure | Higher fees for larger accounts; limited cryptocurrency options |
| Strategy | Passive/active options | Advisor-managed | Personalized with advisor support |
| Fees | Low | Varied | Tiered based on assets |
| Service | Mostly self-directed | Advisor-driven | Advisor-driven with online tools |
| Technology | Online platform | Online access | Comprehensive digital tools |
| Philosophy | Passive investing focus | Active/passive mix | Hybrid with focus on goals |
Vanguard, BlackRock, and Fidelity are all major players in the investment space, particularly in the realm of ETFs and index funds.
Vanguard pioneered low-cost, passive investing and maintains low fees through its investor-owned model.
BlackRock, the world’s largest asset manager, is known for its iShares ETFs and advisor-led, institutional strategies.
Fidelity offers a balanced approach, combining strong digital tools with personalized planning for investors at all levels.
Who owns BlackRock, Vanguard, and Fidelity?
BlackRock: A publicly traded company founded in 1988. Over 50% of its shares are held by institutional investors, including Vanguard.
Vanguard: Privately owned by its mutual funds, which are in turn owned by their investors. There are no external shareholders.
Fidelity: A private, family-owned company still run by the Johnson family since its founding in 1946. It is not publicly traded and maintains long-term independence.
BlackRock vs. Vanguard vs. Fidelity fees: What can I expect?
Fee structures vary significantly across the three firms.
Vanguard keeps costs low and simple, BlackRock uses tiered and often complex advisor-based pricing, while Fidelity offers a range of advisory tiers based on your investment size and needs.
Here is a breakdown of each
Vanguard fees:
Personal Advisor Services: 0.30% annually, with a minimum investment of $50,000 to start.
Digital Advisor: Approximately 0.15% annually, with a $100 minimum investment and no fees for the first 90 days.
Funds: Vanguard ETFs and mutual funds typically have very low expense ratios, averaging around 0.05%.
BlackRock fees:
Wrap fees: Start at 2.50% for portfolios under $500K, scale down with size.
SMAs (Separately Managed Accounts): Fees range from 0.10% to 1.50%+, depending on the strategy (equity, fixed income, or multi-strategy).
Customization: Fees are negotiable at higher portfolio tiers.
Fidelity fees:
Fidelity Go: No fee under $25K and 0.35% above $25K.
Personalized Planning & Advice: 0.50% annually, min. $25K.
Wealth Management: 0.50%–1.50% annually, min. $500K.
Private Wealth: 0.20%–1.04%, requires $2M managed, $10M+ total investable assets.
Is Vanguard, BlackRock, or Fidelity better?
When deciding between the three companies, it's a good idea to weigh up their pros and cons. Here is a breakdown of each firm's advantages and disadvantages to help you make an informed decision.
Vanguard
Pros of Vanguard:
Industry pioneer in passive investing
Extremely low fees
Great for long-term investors
Cons of Vanguard:
Limited in active strategies
Less robust trading tools and research
BlackRock
Pros of BlackRock:
Institutional-grade expertise
Customized investment strategies
Professional portfolio management
Cons of BlackRock:
High minimums and complex fees
Less transparency in self-directed tools
Fidelity
Pros of Fidelity:
Wide service range (DIY to full-service wealth management)
Excellent tech and retirement planning tools
Competitive fees across tiers
Cons of Fidelity:
More expensive than Vanguard for passive investors
Complexity at higher account levels
Vanguard, BlackRock, or Fidelity: Which should I choose?
Choosing among these three depends on your investing style, financial goals, and desired level of involvement:
Choose Vanguard if you are a DIY investor focused on passive, low-cost index funds. It’s ideal for long-term wealth builders seeking simple and efficient growth.
Choose BlackRock if you prefer a hands-off approach and have a larger portfolio that can justify the fees for advisor-led strategies.
Choose Fidelity if you want a balanced experience, with access to both human advisors and robust online tools, that emphasizes retirement planning, goal tracking, and financial wellness.
Can I open a brokerage account with BlackRock, Vanguard, and Fidelity?
Yes, you can.
Vanguard allows you to open brokerage accounts to access its funds and exchange-traded funds (ETFs).
BlackRock does not operate like a traditional brokerage. Its strategies are often accessed via advisors or financial institutions, but you can buy BlackRock iShares ETFs through brokers like Vanguard or Fidelity.
Fidelity offers full-service brokerage accounts with robust digital trading capabilities, as well as retirement accounts.
Many investors hold accounts at more than one firm, using Vanguard for low-cost index exposure, Fidelity for planning tools and customer service, and BlackRock via managed portfolios or iShares ETFs.
Which platform offers better support for long-term, passive investing?
Vanguard is unmatched for passive investors. It built its brand around index fund investing and continues to offer the lowest-cost access to broad market ETFs and mutual funds.
BlackRock offers excellent passive exposure through its iShares ETF suite, but these are often distributed through other brokerages unless you're using a managed portfolio.
Fidelity supports passive investing well, with zero-commission trades, Fidelity ZERO index funds (no expense ratio), and a clean user interface, though fees for advice are higher than Vanguard.
For pure cost-efficiency and passive investing, Vanguard wins.
For passive investing with more flexibility and services, Fidelity is a strong second.
Can I access my Vanguard, BlackRock, or Fidelity accounts online and through mobile apps?
Yes, all three firms provide robust digital access:
Vanguard: Offers an easy-to-use web interface and app to view account performance, make trades, and manage funds. The interface is simple but somewhat dated compared to competitors.
BlackRock: While not a full-service retail brokerage, clients can access performance dashboards and advisor communication portals. However, trading is typically done through third-party platforms.
Fidelity: Offers one of the best digital experiences in the industry. Their mobile app includes account insights, real-time quotes, AI-driven spending analysis, trade execution, goal tracking, and even a virtual assistant.
If technology and digital usability matter to you, Fidelity leads by a wide margin.
How does Vanguard’s investment philosophy differ from that of BlackRock and Fidelity?
Each firm follows a distinct approach:
Vanguard: Passive, low-cost investing
Vanguard focuses on long-term investing through low-cost index funds. It champions passive strategies and pioneered this approach with the introduction of the first index mutual fund in 1976.
BlackRock: Advisor-led, institutional strategies
BlackRock takes a flexible, advisor-driven approach. While it offers passive products like iShares ETFs, its strength lies in professionally managed portfolios tailored for institutions and hands-off investors.
Fidelity: Goal-based, personalized planning
Fidelity combines active and passive strategies, focusing on individual financial goals. Its advisors help investors build custom plans for retirement, education, or income, supported by robust planning tools and research.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.