Just over a week ago I asked the following question:
If you were only allowed to choose one mutual fund company for your investments, which one would it be, and why?
As of this writing, here are the results…
Vanguard – 17 votes
T. Rowe Price – 3.5 votes
Fidelity – 3 votes
Dodge & Cox – 2 votes
Maires and Powers – 0.5 votes
(Although I asked for just one company, some people listed more than one. In those cases, I split the votes.)
I doubt that anyone that knows anything about mutual funds is surprised to see Vanguard come out on top. While I didn’t weigh in previously because I didn’t want to bias the voting, Vanguard is my top choice, as well. My 403(b), SEP-IRA, and our non-retirement mutual fund holdings are all at Vanguard. In contrast, my defined contribution plan is at Fidelity and my 457(b) is at TIAA-CREF. Truth be told, the only reason these latter accounts aren’t Vanguard is that Vanguard isn’t an option.
To be honest, I was a bit surprised to see Fidelity get thrashed so soundly. Their a mainstream investment company with a lot of exposure in employer-sponsored plans, and a number of their index funds are actually a bit cheaper than their counterparts at Vanguard (at least for the time being).