Admiral @ Fidelity?

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Admiral @ Fidelity?

Postby EyeYield » Thu May 02, 2013 11:47 am

I recently tried to buy some Admiral shares at Fidelity, but they wouldn't allow it even though I was trying to buy over the minimum amount needed. It's not bad enough that I have to pay $75 to buy a Vanguard fund at Fidelity, but this is the process I have to go through to make it happen.

Thank you for your patience in waiting for my message. As promised I am writing today to follow up regarding Vanguard Admiral shares.
I was able to reach out to our Non Fidelity Funds Order Room and confirm that if you purchase Investor Shares of Vanguard funds that have Admiral Share equivalents and meet or exceed the minimum required for Admiral Shares, you may request your Investor Shares be converted to Admiral Shares. To make this request you will just need to contact us after you have purchased the Investor Class Shares. We will then submit a request to the fund family, and it will take 5 to 7 business days for your shares to be converted.


No one at either Vanguard or Fidelity was able to tell me why this is so complicated, only that some institutions can't directly buy into Admiral shares.

I can accept that, I just think the process seems like a waste of time and energy.

Does anyone have more specific info on this? Already considering moving to Vanguard, so thanks in advance for that suggestion. 8-)
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Re: Admiral @ Fidelity?

Postby Call_Me_Op » Thu May 02, 2013 12:08 pm

You may wish to also look at Fidelity's Spartan funds, which are competitive with Vanguard funds in terms of expenses.
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Re: Admiral @ Fidelity?

Postby schuyler74 » Thu May 02, 2013 12:14 pm

Here is a list of Fidelity's Spartan Funds. The expense ratios in the "Advantage" class is roughly equivalent to Vanguard's "Admiral" funds.

https://www.fidelity.com/mutual-funds/index-funds/why-fidelity
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Re: Admiral @ Fidelity?

Postby EyeYield » Thu May 02, 2013 12:23 pm

Call_Me_Op wrote:You may wish to also look at Fidelity's Spartan funds, which are competitive with Vanguard funds in terms of expenses.

That's a good suggestion for just about anything, but I'm interested in the Wellesley fund and I haven't seen anything that mirrors that. But maybe I'm missing something? It's probably just as wise to combine two funds to mirror Wellesley and stop making such a big deal of it. My money and my brain = ouch! :oops:
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Re: Admiral @ Fidelity?

Postby Snow Boarder » Thu May 02, 2013 3:05 pm

I use fidelity too. I had looked into this same topic way back when. The fidelity customer service group said that I needed to rephrase the question from "why doesn't fidelity offer the admiral shares on their website?" to "Why is it that Vanguard doesn't allow fidelity to sell admiral share class on the Fidelity website".

Since then the Fidelity spartan fund family has reduced the qualification level to = Vanguards ($10,000) and reduced the ERs and to be neck-and-neck with Vanguard. At this point I would not even consider paying the $75 fee to buy a Vanguard fund.

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Re: Admiral @ Fidelity?

Postby Call_Me_Op » Thu May 02, 2013 3:37 pm

EyeYield wrote:
Call_Me_Op wrote:You may wish to also look at Fidelity's Spartan funds, which are competitive with Vanguard funds in terms of expenses.

That's a good suggestion for just about anything, but I'm interested in the Wellesley fund and I haven't seen anything that mirrors that. But maybe I'm missing something.


Unless you prefer active management, why not combine 1/3 Total Stock Market with 2/3 corporate bonds - and rebalance once per year?
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Re: Admiral @ Fidelity?

Postby livesoft » Thu May 02, 2013 5:31 pm

Another possibility may be to buy Vanguard Signal share class instead. You will need to check on the availability at Fidelity though. I would not be surprised if the Fido rep did not know about Signal share class. Not all Vanguard funds have such a share class.
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Re: Admiral @ Fidelity?

Postby EyeYield » Thu May 02, 2013 8:45 pm

Thanks everybody for the suggestions. There's probably an easy way to replicate the fund by combining other funds as has been mentioned.

As I tend to move from individual equities and managed funds (as tax gains allow) to index funds and more muni's, I'm still attracted to the Wellesley fund.

I just like it, even though it's managed, and there seems to be nothing similar with the low ER's it has. Not to mention it's track record.

Once I get the minimum to qualify for the Admiral shares, I'll probably consider the itch scratched and move on.

As with every fund family/brokerage, some products are given shelf space and some aren't. In this area, things change quite frequently. I just want to get my portfolio in a set it and rebalance once a year mode, before I get tempted with any of these new products that are coming to market lately.

Thanks again,
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Re: Admiral @ Fidelity?

Postby tfb » Fri May 03, 2013 2:07 am

EyeYield wrote:As with every fund family/brokerage, some products are given shelf space and some aren't.

In case it's still not clear, it's Vanguard not allowing Fidelity to sell Admiral, not Fidelity doesn't give shelf space to Vanguard Admiral.
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Re: Admiral @ Fidelity?

Postby abuss368 » Fri May 03, 2013 6:30 am

Consider moving your assets to Vanguard.
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Re: Admiral @ Fidelity?

Postby JW Nearly Retired » Fri May 03, 2013 8:02 am

If you want Wellesley just open a mutual fund account at Vanguard. Many here have accounts at both Vanguard and Fidelity. I have for a long time and find it's a trivial added complication for us.
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Re: Admiral @ Fidelity?

Postby Toons » Fri May 03, 2013 8:21 am

JW Nearly Retired wrote:If you want Wellesley just open a mutual fund account at Vanguard. Many here have accounts at both Vanguard and Fidelity. I have for a long time and find it's a trivial added complication for us.
JW


+1 Exactly, easy to do
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