Anyone have an opinion on this Fidelity portfolio (heavy on FCTDX)?

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JoeMontana16
Posts: 36
Joined: Wed Jul 11, 2018 12:30 pm

Anyone have an opinion on this Fidelity portfolio (heavy on FCTDX)?

Post by JoeMontana16 » Wed Jul 11, 2018 12:37 pm

FCTDX is rather new and the allocation is 49.2% Mutual Funds and 50.08% "sub advisors". Based on the prospectus, my amateur eyes see the potential for a lot of overlap. So I'd love to know what advantages the fund has as it's the majority portion of a portfolio being pitched to me by Fidelity as a 5-15 year buy and hold. Breakdown as follows:

Other

57.9% FCTDX - strategic advisers fidelity US total stock fund

Domestic

2.9% FSKAX

1.8%FNARX

Foreign

17.3%FUSIX

4.0%FERGX

3.8%FEMKX

2.8%FIONX

Bonds

7.3%FHIGX

2.4%FLTMX

Overall Fidelity fee is 1%, and my understanding is that covers all expense ratios etc.
500k initial investment

All opinions are appreciated.

Thank you in advance

ExitStageLeft
Posts: 1006
Joined: Sat Jan 20, 2018 4:02 pm

Re: Anyone have an opinion on this Fidelity portfolio (heavy on FCTDX)?

Post by ExitStageLeft » Wed Jul 11, 2018 6:12 pm

Welcome to the forum! I take it this is in a taxable account?

There's not a lot of info on the Strategic Advisers fund. Past performance is no guarantee of future returns, but the performance over the last three months isn't very good. It underperfomed FSTVX and the total market index. Tax efficiency is an unknown.

For the rest of it, I suppose there is sufficient additional return to justify the PAS fee. Is it a risk profile you would want?

We don't know enough about your situation to advise on muni bonds in taxable. Assuming that they fit your needs, you would probably be better off with managing your own portfolio and going with iShares ETFs for greater tax efficiency:

70% iShares Core S&P Total US Stock Mkt ETF
20% iShares Core MSCI Total Intl Stk ETF
5% Fidelity Municipal Income
5% Fidelity Interm Muni Inc

JoeMontana16
Posts: 36
Joined: Wed Jul 11, 2018 12:30 pm

Re: Anyone have an opinion on this Fidelity portfolio (heavy on FCTDX)?

Post by JoeMontana16 » Wed Jul 11, 2018 6:43 pm

Thank you so much for the warm welcome.

Yes, it is a risk profile I want. Don't need to use the money.
Yes, it's taxable.

Been struggling to isolate why they're pushing FCTDX. The whole sub advisor aspect is completely lost on me. What's the advantage of having that kind of set up? I heard the word "nimble" a lot, but IDK.

I've also considered doing it myself as you suggested, so thank you for the portfolio idea.
I don't come from stocks and I'm just not confident enough to do it yet.

ExitStageLeft
Posts: 1006
Joined: Sat Jan 20, 2018 4:02 pm

Re: Anyone have an opinion on this Fidelity portfolio (heavy on FCTDX)?

Post by ExitStageLeft » Wed Jul 11, 2018 7:10 pm

Hmm, the word "nimble" suggests to me that they'll be busily turning over assets to chase returns. Perhaps the good folks at Fidelity can explain the benfits of such a nimble fund over an indexed total market fund.

https://www.portfoliovisualizer.com/bac ... ion2_2=100

If you're new to the Boglehead mindset, you should Start Here.

averagedude
Posts: 368
Joined: Sun May 13, 2018 3:41 pm

Re: Anyone have an opinion on this Fidelity portfolio (heavy on FCTDX)?

Post by averagedude » Wed Jul 11, 2018 7:23 pm

I must admit i am a junkie when it comes to investing. I rarely see a mutual fund or etf that i don't like. I see big tilts on domestic or international, big tilts on large and small, and big tilts on growth or value. Darn i see tilts on develop or emerging. All of this said, the only guarantee i see is the fees and expenses. These are guaranteed returns that i know i have control over. This is what i focus on even though i may "tilt" to certain things.

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