Looking to diversify my U.S. stock allocation

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new2bogle
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Looking to diversify my U.S. stock allocation

Post by new2bogle »

I have approx a 75/25 stock/bond allocation which I find good for me. All of my stocks are in domestic funds and I am looking to diversify extra money I have sitting in cash right now to Total World index fund ex US. It must be in Fidelity.

How does FSGDX sound? Seems like as good as any thing plus exp ratio is 0.11. Any other suggestions?
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nedsaid
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Re: Looking to diversify my U.S. stock allocation

Post by nedsaid »

The Fidelity Global ex-US Index Premium sounds exactly like what you need. It has Emerging Markets in it. The only flaw that I could find is that the fund, according to Morningstar, is all Large and Mid Caps. The Total International Indexes for some reason seem to have less Small Cap stocks than the US Total Stock Indexes. It looks plenty good enough to me.
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Avo
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Re: Looking to diversify my U.S. stock allocation

Post by Avo »

FTIPX, Fidelity Total International Index Fund Premium Class, is a newer fund that includes small caps.
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ruralavalon
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Re: Looking to diversify my U.S. stock allocation

Post by ruralavalon »

Avo wrote:FTIPX, Fidelity Total International Index Fund Premium Class, is a newer fund that includes small caps.
I agree. The new Fidelity fund, Fidelity Total International Index Fund, is the better choice. It's more diversified since it includes international small-cap stocks.

Both funds are good choices.
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new2bogle
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Re: Looking to diversify my U.S. stock allocation

Post by new2bogle »

Thanks for the tip on FTIPX. It seems to track iShares MSCI ACWI pretty well with 1/3 the expense. Since the ACWI is commission free at Fidelity, is it a better choice? ACWI seems to have a slight edge in performance, but is it worth the exp ratio of 0.33 vs. the 0.11 of FTIPX?

Also, on the description of FTIPX, I see it says Foreign Large blend. Does that include mid to small as well as I don't see it listed (prominently at least).

Thanks.
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triceratop
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Re: Looking to diversify my U.S. stock allocation

Post by triceratop »

new2bogle wrote:Thanks for the tip on FTIPX. It seems to track iShares MSCI ACWI pretty well with 1/3 the expense. Since the ACWI is commission free at Fidelity, is it a better choice? ACWI seems to have a slight edge in performance, but is it worth the exp ratio of 0.33 vs. the 0.11 of FTIPX?

Also, on the description of FTIPX, I see it says Foreign Large blend. Does that include mid to small as well as I don't see it listed (prominently at least).

Thanks.
That is the M* category, I believe. However the index it follows is the MSCI ACWI ex USA Investable Market Index which is an all-cap index
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ruralavalon
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Re: Looking to diversify my U.S. stock allocation

Post by ruralavalon »

triceratop wrote:
new2bogle wrote:Thanks for the tip on FTIPX. It seems to track iShares MSCI ACWI pretty well with 1/3 the expense. Since the ACWI is commission free at Fidelity, is it a better choice? ACWI seems to have a slight edge in performance, but is it worth the exp ratio of 0.33 vs. the 0.11 of FTIPX?

Also, on the description of FTIPX, I see it says Foreign Large blend. Does that include mid to small as well as I don't see it listed (prominently at least).

Thanks.
That is the M* category, I believe. However the index it follows is the MSCI ACWI ex USA Investable Market Index which is an all-cap index
On Morningstar look at the "portfolio" tab for each fund or ETF, and see what each holds. Each does cover large-cap, mid-cap and small-cap.
Last edited by ruralavalon on Tue Jun 27, 2017 12:21 pm, edited 1 time in total.
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triceratop
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Re: Looking to diversify my U.S. stock allocation

Post by triceratop »

ruralavalon wrote:
triceratop wrote:
new2bogle wrote:Thanks for the tip on FTIPX. It seems to track iShares MSCI ACWI pretty well with 1/3 the expense. Since the ACWI is commission free at Fidelity, is it a better choice? ACWI seems to have a slight edge in performance, but is it worth the exp ratio of 0.33 vs. the 0.11 of FTIPX?

Also, on the description of FTIPX, I see it says Foreign Large blend. Does that include mid to small as well as I don't see it listed (prominently at least).

Thanks.
That is the M* category, I believe. However the index it follows is the MSCI ACWI ex USA Investable Market Index which is an all-cap index
On Morningstar look at the "portfolio" tab for the fund, and see what it holds. It does cover large-cap, mid-cap and small-cap.
I don't understand; that is exactly what I said, no? And linked to the MSCI resource which describes it as covering those?
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
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ruralavalon
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Re: Looking to diversify my U.S. stock allocation

Post by ruralavalon »

triceratop wrote:
ruralavalon wrote:
triceratop wrote:
new2bogle wrote:Thanks for the tip on FTIPX. It seems to track iShares MSCI ACWI pretty well with 1/3 the expense. Since the ACWI is commission free at Fidelity, is it a better choice? ACWI seems to have a slight edge in performance, but is it worth the exp ratio of 0.33 vs. the 0.11 of FTIPX?

Also, on the description of FTIPX, I see it says Foreign Large blend. Does that include mid to small as well as I don't see it listed (prominently at least).

Thanks.
That is the M* category, I believe. However the index it follows is the MSCI ACWI ex USA Investable Market Index which is an all-cap index
On Morningstar look at the "portfolio" tab for the fund, and see what it holds. It does cover large-cap, mid-cap and small-cap.
I don't understand; that is exactly what I said, no? And linked to the MSCI resource which describes it as covering those?
True, I was not disagreeing with you. I was just telling new2bogle how to use Morningstar to compare the coverage of different funds and ETFs.
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Topic Author
new2bogle
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Re: Looking to diversify my U.S. stock allocation

Post by new2bogle »

ruralavalon / triceratop: thank you both for the posts. I was only looking at fidelity.com for my information. I think based on morningstar information, I want FTIPX as the ACWI has 55% U.S. stock, and I want only ex-US stock index.

Thanks. I will purchase the FTIPX fund.

ETA:
I suppose the better comparison is to ACWX, which is ACWI ex-US
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