ETF's similar to Fidelity Puritan

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Bugsy
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ETF's similar to Fidelity Puritan

Post by Bugsy » Mon May 29, 2017 4:54 pm

I had Fidelity Puritan for a while years back. Now looking for a similar fund in an ETF. Any suggestions??

TIAX
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Re: ETF's similar to Fidelity Puritan

Post by TIAX » Mon May 29, 2017 5:08 pm

Why did you sell it? Why do you want something like it now? Why do you not want to buy that fund?

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nisiprius
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Re: ETF's similar to Fidelity Puritan

Post by nisiprius » Mon May 29, 2017 6:24 pm

ETFs tend to be index funds. Fidelity Puritan is an actively managed fund.

I don't completely understand the new regulations which make it possible to have an actively managed ETF, but it isn't easy and there are still rules which prevent them from being managed with same freedom as a mutual fund.

If you look at Vanguard's lineup, as far as I know none of their actively managed funds have ETF counterparts--there is no Wellington ETF, no Windsor ETF, no GNMA ETF.

There are few examples of an ETF that corresponds to a "name brand" actively managed mutual fund. (One example is the PIMCO Total Return Bond Fund, PTTRX, and the PIMCO Total Return Active ETF, BOND. Despite the name and the marketing, they are far from identical).

Puritan is a balanced fund, with about 75% stocks and 25% bonds-and-cash. There are very few balanced ETFs. This list shows only one balanced ETF with that approximate allocation that's a "straight" vanilla balanced fund portfolio: iShares Core Aggressive Allocation, AOA. Starting the chart at almost the inception of AOA, but just a little bit later to ignore what I think is an initial glitch, here's how it has compared with FPURX. However, I don't think the period of time covered is long enough, or includes a wide enough variety of market conditions, to judge how similar the two really are.

Source
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I think you should just stick with FPURX. I'm not clear on why you want an ETF. If you believe in the value of Fidelity's active management of FPURX, you won't find it in an ETF. If you are happy enough just to replicate the asset allocation, I'd just use several separate ETFs. If you must have a single ETF, AOA is a single ETF that contains both stocks and bonds in a relative allocation that is not too different from that of FPURX.
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jjface
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Re: ETF's similar to Fidelity Puritan

Post by jjface » Mon May 29, 2017 6:32 pm

Well it is supposed to be a 60:40 allocation but it ramps it up in anticipation of growth spurts. I think it is 70:30 ish now. Not really something you can match in an ETF.

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SpringMan
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Re: ETF's similar to Fidelity Puritan

Post by SpringMan » Mon May 29, 2017 7:09 pm

nisiprius wrote:
If you look at Vanguard's lineup, as far as I know none of their actively managed funds have ETF counterparts--there is no Wellington ETF, no Windsor ETF, no GNMA ETF.
Vanguard Mortgage-Backed Securities ETF (VMBS) has GNMA and US agency backed securities but you are right, not actively managed
Best Wishes, SpringMan

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