Fidelity Built 3 ETFs That Quietly Outpace Their Vanguard Rivals, and Cost Almost Nothing

"The Fidelity Enhanced Large Cap Growth ETF and the Vanguard Growth ETF hold nearly identical names at the top of their portfolios. NVIDIA, Apple, Microsoft, Broadcom, and Amazon dominate both sides."

"The one-year return gap is less than half a percentage point, and the Vanguard fund sits slightly ahead at 33.59% versus 33.13%. Year to date, the Vanguard fund leads by 1.34%."

"For large-cap growth exposure, the Vanguard Growth ETF's cost advantage is hard to overcome when the portfolios are this similar."

"In international developed markets, the Fidelity Enhanced International ETF holds 406 stocks compared with the Vanguard FTSE Developed Markets ETF, which has a different approach to stock selection."

Passive investing promises low costs and broad diversification, exemplified by Vanguard's popular ETFs. Fidelity has developed actively managed counterparts that utilize computer-aided stock selection to focus on companies with stronger fundamentals. The performance comparison shows that the Fidelity Enhanced Large Cap Growth ETF and Vanguard Growth ETF have nearly identical returns, with Vanguard slightly ahead. In international markets, Vanguard outperforms in returns, while Fidelity offers a more concentrated portfolio. The expense differences are narrower than many investors believe, warranting further examination of performance outcomes.

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