Fidelity/iShares version of VNQ ?

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brad.clarkston
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Fidelity/iShares version of VNQ ?

Post by brad.clarkston » Tue Jan 03, 2017 11:32 pm

In my Fidelity account I have 10% of equities in {Vanguard Index FDS REIT ETF - VNQ }. It's been my darling for awhile so I'm having a hard time finding a good replacement.

Fidelity's robo-advice { FIDELITY MSCI REAL ESTATE INDEX ETF - FREL } is a passive fund with a 0.85% ER, Tracking Error of 0.17% and not even half the sale volume or Net Asset. I could understand it better if it was a enhanced ETF but it doesn't even have that going for it.

I'm looking for something that trades free on FID at about the same type of fund (MF or ETF) or I guess I could stick with VNQ and eat the commission. ?

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walletless
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Re: Fidelity/iShares version of VNQ ?

Post by walletless » Tue Jan 03, 2017 11:41 pm

Look at FSRVX if you like the non-etf version

frisco
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Re: Fidelity/iShares version of VNQ ?

Post by frisco » Tue Jan 03, 2017 11:47 pm

You may want to check out the Fidelity® Real Estate Index Fund, which tracks the Dow Jones U.S. Select Real Estate Securities Index. Investor class (FRXIX) has a 0.23% expense ratio, and Premium class (FSRVX) has a 0.09% expense ratio ($10,000 minimum initial investment). The fund should trade without commissions at Fidelity.

Additional options may be found via Fidelity’s Mutual Fund Research tool: https://www.fidelity.com/fund-screener/research.shtml

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patriciamgr2
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Re: Fidelity/iShares version of VNQ ?

Post by patriciamgr2 » Tue Jan 03, 2017 11:52 pm

IYR is broad based REIT vehicle; expense ratio is in the .45 range; but it contains mortgage REITs unlike VNQ. Unfortunately, it's not commission free - unless you've qualified for free trades by moving cash to Fidelity. Do you plan to make frequent periodic purchases? If not, sticking with VNQ seems sensible.

brad.clarkston
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Re: Fidelity/iShares version of VNQ ?

Post by brad.clarkston » Wed Jan 04, 2017 12:01 am

Yes I'm planning on making purchases during the year but I might just stick with VNQ after looking at the options.
The $7.95 fee is looking a bit better ;)

Funny enough when I plug IYR into FID's new research dashboard it recommends VNQ to me after the commission free FREL offering ...

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walletless
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Re: Fidelity/iShares version of VNQ ?

Post by walletless » Wed Jan 04, 2017 12:05 am

brad.clarkston wrote:Yes I'm planning on making purchases during the year but I might just stick with VNQ after looking at the options.
The $7.95 fee is looking a bit better ;)

Funny enough when I plug IYR into FID's new research dashboard it recommends VNQ to me after the commission free FREL offering ...
Curious-- Why vnq over fSRVX?

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Re: Fidelity/iShares version of VNQ ?

Post by brad.clarkston » Wed Jan 04, 2017 12:31 am

walletless wrote:
brad.clarkston wrote:Yes I'm planning on making purchases during the year but I might just stick with VNQ after looking at the options.
The $7.95 fee is looking a bit better ;)

Funny enough when I plug IYR into FID's new research dashboard it recommends VNQ to me after the commission free FREL offering ...
Curious-- Why vnq over fSRVX?

After my '08 debacle I switched to a lazy 3-fund port in both my VG and FID accounts. I pretty much lost my shirt in that crash and didn't have allot of money left so I went with ETF's. A few years later I sliced the FID up with a SCV/REIT tilt still using the VG funds becouse I was putting more money into it than the VG account at the time.

MY VG account is still a pure 3 fund account while FID is six and big enough to start converting everything away from ETF's if I want and to FID's free trades. I've just been to timid to deviate away from the exact bogle bible after that scare until now ;)

I'm not in a giant hurry tho. I'll take another look at fSRVX when I'm not as tired. Thanks for all the help everyone!

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9-5 Suited
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Re: Fidelity/iShares version of VNQ ?

Post by 9-5 Suited » Wed Jan 04, 2017 12:37 am

I hold VNQ in a Roth IRA at Fidelity. My strategy is to only make bigger purchases 1-2 times per year which limits commission fees. Seems to work just fine and I've never had issues staying within rebalancing bands.

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Re: Fidelity/iShares version of VNQ ?

Post by brad.clarkston » Wed Jan 04, 2017 12:42 am

I think I found it -- { iShares Core U.S. REIT ETF - USRT } with a 0.08% ER.

It tracks the Dow Jones US Select Securities Index instead of MCI like most iShares funds and it looks like it matches up with VNQ very closely.

But of course it doesn't trade free of FID. SO VNQ it probably is.

Theoretical
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Re: Fidelity/iShares version of VNQ ?

Post by Theoretical » Wed Jan 04, 2017 2:55 am

I'm really partial to the iShares Global REIT ETF REET. ER of .14%, Nearly $250M in AUM, and it includes all global non-mortgage REITs as a pure asset class. It's the TSM of the REIT world, from what I can tell.

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SpringMan
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Re: Fidelity/iShares version of VNQ ?

Post by SpringMan » Wed Jan 04, 2017 5:43 am

Theoretical wrote:I'm really partial to the iShares Global REIT ETF REET. ER of .14%, Nearly $250M in AUM, and it includes all global non-mortgage REITs as a pure asset class. It's the TSM of the REIT world, from what I can tell.
Not really because TSM is 100% domestic stock and REET is has roughly 1/3 foreign stock.
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veggivet
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Re: Fidelity/iShares version of VNQ ?

Post by veggivet » Wed Jan 04, 2017 6:30 am

I hold VNQ in one of my Fidelity accounts. Ask your advisor for a few free trades before you plan on adding to your position; there's a very good chance you'll get them hassle-free.

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Re: Fidelity/iShares version of VNQ ?

Post by oldcomputerguy » Wed Jan 04, 2017 6:32 am

brad.clarkston wrote:In my Fidelity account I have 10% of equities in {Vanguard Index FDS REIT ETF - VNQ }. It's been my darling for awhile so I'm having a hard time finding a good replacement.

Fidelity's robo-advice { FIDELITY MSCI REAL ESTATE INDEX ETF - FREL } is a passive fund with a 0.85% ER, Tracking Error of 0.17% and not even half the sale volume or Net Asset. I could understand it better if it was a enhanced ETF but it doesn't even have that going for it.

I'm looking for something that trades free on FID at about the same type of fund (MF or ETF) or I guess I could stick with VNQ and eat the commission. ?
If you're just looking to get out of VNQ, you might check SCHH (Schwab US REIT). It has less tracking error than FREL and lower ER than either FREL or VNQ.

I don't get where you see FREL's ER as 0.85, though. Fidelity showed it as 0.084% when I checked it just now.
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siamond
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Re: Fidelity/iShares version of VNQ ?

Post by siamond » Wed Jan 25, 2017 5:36 pm

Theoretical wrote:I'm really partial to the iShares Global REIT ETF REET. ER of .14%, Nearly $250M in AUM, and it includes all global non-mortgage REITs as a pure asset class. It's the TSM of the REIT world, from what I can tell.
I am very tempted too, now that I upgraded my Vanguard IRAs to the new 'brokerage' favor. So far, I have 5% of my AA with US REITs and 5% with Int'l REITs using corresponding Vanguard funds, but what I really wanted to do all along was 10% Global REITs...

I am a little hesitant due to some loss aversion bias (Int'l REITs didn't exactly rock the boat in the past couple of years), but besides that, I also really like the idea of 'the TSM of the REIT world', as you nicely put. I took a note in my IPS to mull it over during the coming year!

PS. Vanguard, come on, WTF with those 0.25% redemption/purchase fees on VGLRX (Int'l REITs)?

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F150HD
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Re: Fidelity/iShares version of VNQ ?

Post by F150HD » Tue Jul 11, 2017 11:43 am

brad.clarkston wrote:
Fidelity's robo-advice { FIDELITY MSCI REAL ESTATE INDEX ETF - FREL } is a passive fund with a 0.85% ER
unclear where that ER comes from

ER = 0.08%

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ruralavalon
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Re: Fidelity/iShares version of VNQ ?

Post by ruralavalon » Tue Jul 11, 2017 1:05 pm

frisco wrote:You may want to check out the Fidelity® Real Estate Index Fund, which tracks the Dow Jones U.S. Select Real Estate Securities Index. Investor class (FRXIX) has a 0.23% expense ratio, and Premium class (FSRVX) has a 0.09% expense ratio ($10,000 minimum initial investment). The fund should trade without commissions at Fidelity.

Additional options may be found via Fidelity’s Mutual Fund Research tool: https://www.fidelity.com/fund-screener/research.shtml
I also suggest Fidelity Real Estate Index Fund.
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