Fidelity HSA - switch to VTWAX?

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passive101
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Fidelity HSA - switch to VTWAX?

Post by passive101 »

In my Fidelity HSA it doesn't automatically auto balance funds for some reason. Would it make sense to use the Vanguard Total World Stock Index Fund Admiral VTWAX? It's currently in a Fidelity Target Date fund (FFLEX) that is .08% but I don't want the bonds since I want more potential growth.
https://fundresearch.fidelity.com/mutua ... /315793554

The fee is .10% and as far as I can tell their are no more additional fees that Fidelity adds on to it. VTWAX looks almost identical to VT, but it won't let me choose an ETF inside the HSA it looks like.


As far as I can tell Fidelity does not offer a Total World ETF or Mutual Fund that has a fee or one of their zero fund options. If anyone knows of anything else that would make this not an ideal thing to do since it's a Vanguard fund please let me know.
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Re: Fidelity HSA - switch to VTWAX?

Post by oldcomputerguy »

Generally, Fidelity charges a whopping price to buy Vanguard mutual funds that is not related to the 0.1% expense ratio. For example, Fidelity charges $75 to purchase shares of VTSAX, but if you set up an automated purchase of more shares, they will only charge $5 per purchase for each additional purchase. I wasn't able to determine the purchase fee for VTWAX, because it seems from what I was able to tell surfing around that you can't buy VTWAX at all at Fidelity. When I tried to research the ticker, I get this:

"The symbol you're interested in is either not a valid Mutual Fund or is a fund that's not available on Fidelity.com."
Dude2
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Re: Fidelity HSA - switch to VTWAX?

Post by Dude2 »

VTWAX is the equivalent mutual fund for VT.
Not sure why you can't buy ETFs in your Fidelity HSA. I have this, and I buy the VT ETF. It is very easy to do, i.e. intuitive, but like anything else you need to get used to something new.
I'm certain most people here will say to buy VT ETF. Maybe knowing it is possible will motivate you to figure out how to do it. You can always call them if you have to.
Then ’tis like the breath of an unfee’d lawyer.
justglassin
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Re: Fidelity HSA - switch to VTWAX?

Post by justglassin »

Have you considered a combination of Fidelity Mutual Funds, Total US (FSKAK) and Total International (FTIHX), in roughly 60/40 or 55/45 weighting? I don't use Fidelity so can't speak to their auto-invest features, but if you can't find a way to use the VT ETF, this may be a very easy way to roughly approximate VT using Fidelity mutual funds and automate your HSA investment.

I've become more of a fan of mutual funds for long term investing. In my taxable account, I've moved from VTI/VXUS to VTSAX and VTIAX because I found the temptation to try to time my bi-weekly investments into the ETFs too problematic and a hassle.
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Re: Fidelity HSA - switch to VTWAX?

Post by muffins14 »

Dude2 wrote: Wed Oct 13, 2021 6:12 am VTWAX is the equivalent mutual fund for VT.
Not sure why you can't buy ETFs in your Fidelity HSA. I have this, and I buy the VT ETF. It is very easy to do, i.e. intuitive, but like anything else you need to get used to something new.
I'm certain most people here will say to buy VT ETF. Maybe knowing it is possible will motivate you to figure out how to do it. You can always call them if you have to.
+1

I have a fidelity HSA and I invest in VT. Log in Jan 1, deposit, purchase VT, done.

OP: what do you mean by auto-balance? Do you want an account that lets you click a single button to rebalance your holdings to a specific pre-set allocation? That exists in some 401k plans and at M1 Finance for some accounts, but I don’t think it’s typical across most brokerages or most account types. Certainly I wouldn’t want to do this if I were handing over control of share selection for tax purposes
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Re: Fidelity HSA - switch to VTWAX?

Post by mhc »

I take a different approach. I don't try to rebalance using my HSA. My Fidelity HSA is completely in Fidelity's Total Stock Mutual Fund. My Roth is total stock market. My DW's Roth is total international. I then use my new contributions to my 401k and taxable to maintain my AA.

I like to have a single fund in the smaller accounts (e.g., HSA, Roth).
hnd
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Re: Fidelity HSA - switch to VTWAX?

Post by hnd »

I use AOA in my fidelity HSa which is an allocation ETF from ishares. It has 10-15% bonds but everything else is a vtwax similar allocation
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passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

muffins14 wrote: Wed Oct 13, 2021 8:00 am
Dude2 wrote: Wed Oct 13, 2021 6:12 am VTWAX is the equivalent mutual fund for VT.
Not sure why you can't buy ETFs in your Fidelity HSA. I have this, and I buy the VT ETF. It is very easy to do, i.e. intuitive, but like anything else you need to get used to something new.
I'm certain most people here will say to buy VT ETF. Maybe knowing it is possible will motivate you to figure out how to do it. You can always call them if you have to.
+1

I have a fidelity HSA and I invest in VT. Log in Jan 1, deposit, purchase VT, done.

OP: what do you mean by auto-balance? Do you want an account that lets you click a single button to rebalance your holdings to a specific pre-set allocation? That exists in some 401k plans and at M1 Finance for some accounts, but I don’t think it’s typical across most brokerages or most account types. Certainly I wouldn’t want to do this if I were handing over control of share selection for tax purposes
What fees do they charge you to buy VT through your Fidelity HSA? Does it just stay at the .10%?
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anon_investor
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Re: Fidelity HSA - switch to VTWAX?

Post by anon_investor »

passive101 wrote: Wed Oct 13, 2021 12:13 pm
muffins14 wrote: Wed Oct 13, 2021 8:00 am
Dude2 wrote: Wed Oct 13, 2021 6:12 am VTWAX is the equivalent mutual fund for VT.
Not sure why you can't buy ETFs in your Fidelity HSA. I have this, and I buy the VT ETF. It is very easy to do, i.e. intuitive, but like anything else you need to get used to something new.
I'm certain most people here will say to buy VT ETF. Maybe knowing it is possible will motivate you to figure out how to do it. You can always call them if you have to.
+1

I have a fidelity HSA and I invest in VT. Log in Jan 1, deposit, purchase VT, done.

OP: what do you mean by auto-balance? Do you want an account that lets you click a single button to rebalance your holdings to a specific pre-set allocation? That exists in some 401k plans and at M1 Finance for some accounts, but I don’t think it’s typical across most brokerages or most account types. Certainly I wouldn’t want to do this if I were handing over control of share selection for tax purposes
What fees do they charge you to buy VT through your Fidelity HSA? Does it just stay at the .10%?
ETFs should all be commission free at Fidelity.
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passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

muffins14 wrote: Wed Oct 13, 2021 8:00 am
Dude2 wrote: Wed Oct 13, 2021 6:12 am VTWAX is the equivalent mutual fund for VT.
Not sure why you can't buy ETFs in your Fidelity HSA. I have this, and I buy the VT ETF. It is very easy to do, i.e. intuitive, but like anything else you need to get used to something new.
I'm certain most people here will say to buy VT ETF. Maybe knowing it is possible will motivate you to figure out how to do it. You can always call them if you have to.
+1

I have a fidelity HSA and I invest in VT. Log in Jan 1, deposit, purchase VT, done.

OP: what do you mean by auto-balance? Do you want an account that lets you click a single button to rebalance your holdings to a specific pre-set allocation? That exists in some 401k plans and at M1 Finance for some accounts, but I don’t think it’s typical across most brokerages or most account types. Certainly I wouldn’t want to do this if I were handing over control of share selection for tax purposes
I was thinking if it auto rebalanced that I would not have to remember to log in every few months and try to rebalance it if I used 2 funds such as a US market and international. People are saying I can just use VT as well. I wonder if I can't exchange a mutual fund for an ETF? Maybe I have to sell what I have and then buy the ETF.
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Re: Fidelity HSA - switch to VTWAX?

Post by mervinj7 »

passive101 wrote: Wed Oct 13, 2021 12:13 pm What fees do they charge you to buy VT through your Fidelity HSA? Does it just stay at the .10%?
No additional fees for purchasing VT. Have you tried just purchasing a share to see what happens? Also, the ER for VT is 0.08%, the same as your existing Target Date Fund. Your current target date fund has less 10% bonds, so it's still a very equity heavy fund.

https://www.fidelity.com/go/hsa/faqs
https://www.fidelity.com/why-fidelity/pricing-fees
Last edited by mervinj7 on Wed Oct 13, 2021 12:30 pm, edited 1 time in total.
sycamore
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Re: Fidelity HSA - switch to VTWAX?

Post by sycamore »

passive101 wrote: Wed Oct 13, 2021 3:39 am In my Fidelity HSA it doesn't automatically auto balance funds for some reason. Would it make sense to use the Vanguard Total World Stock Index Fund Admiral VTWAX? It's currently in a Fidelity Target Date fund (FFLEX) that is .08% but I don't want the bonds since I want more potential growth.
https://fundresearch.fidelity.com/mutua ... /315793554

The fee is .10% and as far as I can tell their are no more additional fees that Fidelity adds on to it. VTWAX looks almost identical to VT, but it won't let me choose an ETF inside the HSA it looks like.


As far as I can tell Fidelity does not offer a Total World ETF or Mutual Fund that has a fee or one of their zero fund options. If anyone knows of anything else that would make this not an ideal thing to do since it's a Vanguard fund please let me know.
passive101, does your employer use Fidelity as the HSA custodian? If so, it's possible that your employer's HSA plan limits the participants to only certain funds and charges a 0.10% fee.

In addition to Fidelity acting as a custodian for employer HSA plans, Fidelity also offers an HSA account to anyone who is eligible (***). With these accounts, you can purchase any fund or ETF that Fidelity offers through its brokerage platform. And there are no fees at all.

*** meaning you either (1) have an HDHP-compliant health insurance plan, or you previously did and want to transfer your old HSA at another custodian over to Fidelity. This is what so many Bogleheads have done -- see the Fidelity Health Savings Account Mega-Thread.
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Re: Fidelity HSA - switch to VTWAX?

Post by Dude2 »

passive101 wrote: Wed Oct 13, 2021 12:20 pm I wonder if I can't exchange a mutual fund for an ETF? Maybe I have to sell what I have and then buy the ETF.
Sell mutual fund you have, and proceeds go into the sweep account (money market). Then can buy VT the next day. Note that to purchase fractional shares (a nice feature), you have to buy during open market hours, i.e. 9:30 - 4 EST. Thus you will get every penny of the mutual fund you just sold going into VT the next day when you do the trade.
Then ’tis like the breath of an unfee’d lawyer.
Northern Flicker
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Re: Fidelity HSA - switch to VTWAX?

Post by Northern Flicker »

passive101 wrote: Wed Oct 13, 2021 12:20 pm I was thinking if it auto rebalanced that I would not have to remember to log in every few months and try to rebalance it if I used 2 funds such as a US market and international. People are saying I can just use VT as well. I wonder if I can't exchange a mutual fund for an ETF? Maybe I have to sell what I have and then buy the ETF.
You don't need to have 1 fund to achieve this. The reason you don't have to rebalance VT is not because it is 1 fund, but because you are choosing to use global market cap weight rather than a fixed weight as your allocation. If you hold a total US stock fund and total int'l stock fund in global market cap weight proportions, and reinvest dividends in each, they will stay at market cap weight as the market moves, and you also won't have to rebalance.

There is a small caveat which is that theoretically the free floats of stocks and makeup of the indices could change enough that float adjusted indices could get out of balance. For the entire world market cap this will be so negligible that it can be ignored. It does mean that the fund company has to rebalance each index internally a little bit every once in a while when the free float of a stock changes or the makeup of an index changes.

Reinvestment of dividends reduces the already neglible effect even more. Index providers adding small caps or China A-shares to total int'l indices would be an example if the type of change that would require you to rebalance to the new market cap weightings, not market moves or the regular changes in free floats, or adding and removing stocks from the index.

Nonetheless, holding TSM and TISM (or any equity portfolio) at cap weight avoids the need to rebalance regardless of how the individual stocks of the portfolio are grouped into fund packages.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
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Re: Fidelity HSA - switch to VTWAX?

Post by muffins14 »

passive101 wrote: Wed Oct 13, 2021 12:13 pm
muffins14 wrote: Wed Oct 13, 2021 8:00 am
Dude2 wrote: Wed Oct 13, 2021 6:12 am VTWAX is the equivalent mutual fund for VT.
Not sure why you can't buy ETFs in your Fidelity HSA. I have this, and I buy the VT ETF. It is very easy to do, i.e. intuitive, but like anything else you need to get used to something new.
I'm certain most people here will say to buy VT ETF. Maybe knowing it is possible will motivate you to figure out how to do it. You can always call them if you have to.
+1

I have a fidelity HSA and I invest in VT. Log in Jan 1, deposit, purchase VT, done.

OP: what do you mean by auto-balance? Do you want an account that lets you click a single button to rebalance your holdings to a specific pre-set allocation? That exists in some 401k plans and at M1 Finance for some accounts, but I don’t think it’s typical across most brokerages or most account types. Certainly I wouldn’t want to do this if I were handing over control of share selection for tax purposes
What fees do they charge you to buy VT through your Fidelity HSA? Does it just stay at the .10%?
It's free to purchase, you just pay the expense ratio
nalor511
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Re: Fidelity HSA - switch to VTWAX?

Post by nalor511 »

I own vanguard etf in fidelity hsa --- no fees.
Topic Author
passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

I was able to buy VT in my HSA, but it now won't let me automatically setup investments with it?

"No Mutual Fund Positions for Account
There are no eligible Mutual Fund positions in xxxxxxxxxx.

You must own a Mutual Fund or Money Market Fund in your account to establish automatic investments."

I have the same investment set up. The first one goes from my checking account into my core account. I just won't let me set one up because it's not a mutual fund now it seems.
sycamore
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Re: Fidelity HSA - switch to VTWAX?

Post by sycamore »

passive101 wrote: Thu Oct 14, 2021 12:54 pm I was able to buy VT in my HSA, but it now won't let me automatically setup investments with it?

"No Mutual Fund Positions for Account
There are no eligible Mutual Fund positions in xxxxxxxxxx.

You must own a Mutual Fund or Money Market Fund in your account to establish automatic investments."

I have the same investment set up. The first one goes from my checking account into my core account. I just won't let me set one up because it's not a mutual fund now it seems.
You correctly describe the situation at Fidelity: automatic purchasing only works with mutual funds, not ETFs. From https://www.fidelity.com/bin-public/060 ... tments.pdf, in the "Helpful to Know" section:
• For nonretirement and HSA accounts, you must already have an investment in any mutual fund in which you would like to automatically invest.
So even though VT and VTWAX are different share classes of a single fund, that doesn't let you get around Fidelity's restriction of allowing automatic investing only for mutual funds.

Another interesting bullet from that PDF:
• There are no transaction fees for automatic investments into Fidelity funds or FundsNetwork® No Transaction Fee (NTF) funds. For all other funds, there is a $5 fee for each automatic investment, in addition to any other fees that may apply. Your bank or other financial institution may also charge transaction fees.
So let's imagine you sold the VT ETF and paid a one-time $75 fee to buy VTWAX. Regarding the bolded part above, I'm not sure if that means if you'd pay only $5 or $5 + $75 for each subsequent automatic investment of VTWAX. The language they use is not clear to me, so I suggest you call them and ask. Maybe paying only $5/purchase is not too much for you?
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passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

Woah that's a huge fee when I'm only buying $300/month in this HSA!

Are others aware of this?

Maybe I should consider just using the 2 fund fidelity option for their total US fund & international?
UpperNwGuy
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Re: Fidelity HSA - switch to VTWAX?

Post by UpperNwGuy »

passive101 wrote: Thu Oct 14, 2021 6:22 pm Woah that's a huge fee when I'm only buying $300/month in this HSA!

Are others aware of this?

Maybe I should consider just using the 2 fund fidelity option for their total US fund & international?
Yes, that is what you should do.
sycamore
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Re: Fidelity HSA - switch to VTWAX?

Post by sycamore »

UpperNwGuy wrote: Thu Oct 14, 2021 7:10 pm
passive101 wrote: Thu Oct 14, 2021 6:22 pm Woah that's a huge fee when I'm only buying $300/month in this HSA!

Are others aware of this?

Maybe I should consider just using the 2 fund fidelity option for their total US fund & international?
Yes, that is what you should do.
And another option is to simply manually purchase the VT ETF once a month.
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Re: Fidelity HSA - switch to VTWAX?

Post by drk »

passive101 wrote: Wed Oct 13, 2021 3:39 am In my Fidelity HSA it doesn't automatically auto balance funds for some reason. Would it make sense to use the Vanguard Total World Stock Index Fund Admiral VTWAX? It's currently in a Fidelity Target Date fund (FFLEX) that is .08% but I don't want the bonds since I want more potential growth.
https://fundresearch.fidelity.com/mutua ... /315793554
Honestly, you're overthinking this. That 10% allocation to bonds simply won't have a big impact on returns, particularly if you have other investment accounts that are ~100% stock. I would hold the target date fund until my overall asset allocation justified swapping it for something more targeted.
UpperNwGuy
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Re: Fidelity HSA - switch to VTWAX?

Post by UpperNwGuy »

sycamore wrote: Thu Oct 14, 2021 7:25 pm
UpperNwGuy wrote: Thu Oct 14, 2021 7:10 pm
passive101 wrote: Thu Oct 14, 2021 6:22 pm Woah that's a huge fee when I'm only buying $300/month in this HSA!

Are others aware of this?

Maybe I should consider just using the 2 fund fidelity option for their total US fund & international?
Yes, that is what you should do.
And another option is to simply manually purchase the VT ETF once a month.
Yes, I agree that manual VT purchases is an equally good option.
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passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

UpperNwGuy wrote: Thu Oct 14, 2021 8:20 pm
sycamore wrote: Thu Oct 14, 2021 7:25 pm
UpperNwGuy wrote: Thu Oct 14, 2021 7:10 pm
passive101 wrote: Thu Oct 14, 2021 6:22 pm Woah that's a huge fee when I'm only buying $300/month in this HSA!

Are others aware of this?

Maybe I should consider just using the 2 fund fidelity option for their total US fund & international?
Yes, that is what you should do.
And another option is to simply manually purchase the VT ETF once a month.
Yes, I agree that manual VT purchases is an equally good option.
I'm going to call them on Monday and find out what the actual fee for this is.
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passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

sycamore wrote: Thu Oct 14, 2021 3:19 pm
passive101 wrote: Thu Oct 14, 2021 12:54 pm I was able to buy VT in my HSA, but it now won't let me automatically setup investments with it?

"No Mutual Fund Positions for Account
There are no eligible Mutual Fund positions in xxxxxxxxxx.

You must own a Mutual Fund or Money Market Fund in your account to establish automatic investments."

I have the same investment set up. The first one goes from my checking account into my core account. I just won't let me set one up because it's not a mutual fund now it seems.
You correctly describe the situation at Fidelity: automatic purchasing only works with mutual funds, not ETFs. From https://www.fidelity.com/bin-public/060 ... tments.pdf, in the "Helpful to Know" section:
• For nonretirement and HSA accounts, you must already have an investment in any mutual fund in which you would like to automatically invest.
So even though VT and VTWAX are different share classes of a single fund, that doesn't let you get around Fidelity's restriction of allowing automatic investing only for mutual funds.

Another interesting bullet from that PDF:
• There are no transaction fees for automatic investments into Fidelity funds or FundsNetwork® No Transaction Fee (NTF) funds. For all other funds, there is a $5 fee for each automatic investment, in addition to any other fees that may apply. Your bank or other financial institution may also charge transaction fees.
So let's imagine you sold the VT ETF and paid a one-time $75 fee to buy VTWAX. Regarding the bolded part above, I'm not sure if that means if you'd pay only $5 or $5 + $75 for each subsequent automatic investment of VTWAX. The language they use is not clear to me, so I suggest you call them and ask. Maybe paying only $5/purchase is not too much for you?
I'm going to call and ask about these. If they're $75/buy then neither VT or VTWAX would be worth the buys.
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camillus
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Re: Fidelity HSA - switch to VTWAX?

Post by camillus »

Are you rebalancing in all your accounts? Why?

The simplest answer is alluded to above in several posts.

Hold FSKAX in your HSA. That's it. Since it's a mutual fund you can set up automatic contributions.

Maintain a spreadsheet that keeps your total asset allocation across all your accounts.

Use one of your larger accounts, like your 401k or an IRA, as a rebalancing account. This might end up being the only account where you have more than one holding!

This way, each of your smaller accounts will have one holding with automatic contributions - you never have to log in to rebalance or buy ETFs. You only ever have to update your spreadsheet and then log in to your rebalancing account and put in a trade between mutual funds to execute at the end of the next business day.

Last I looked, Fidelity mutual funds were cheaper than Vanguard mutual funds and ETFs.
51% US / 34% ex-US / 15% “bond”
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Re: Fidelity HSA - switch to VTWAX?

Post by anon_investor »

passive101 wrote: Fri Oct 15, 2021 8:49 pm
sycamore wrote: Thu Oct 14, 2021 3:19 pm
passive101 wrote: Thu Oct 14, 2021 12:54 pm I was able to buy VT in my HSA, but it now won't let me automatically setup investments with it?

"No Mutual Fund Positions for Account
There are no eligible Mutual Fund positions in xxxxxxxxxx.

You must own a Mutual Fund or Money Market Fund in your account to establish automatic investments."

I have the same investment set up. The first one goes from my checking account into my core account. I just won't let me set one up because it's not a mutual fund now it seems.
You correctly describe the situation at Fidelity: automatic purchasing only works with mutual funds, not ETFs. From https://www.fidelity.com/bin-public/060 ... tments.pdf, in the "Helpful to Know" section:
• For nonretirement and HSA accounts, you must already have an investment in any mutual fund in which you would like to automatically invest.
So even though VT and VTWAX are different share classes of a single fund, that doesn't let you get around Fidelity's restriction of allowing automatic investing only for mutual funds.

Another interesting bullet from that PDF:
• There are no transaction fees for automatic investments into Fidelity funds or FundsNetwork® No Transaction Fee (NTF) funds. For all other funds, there is a $5 fee for each automatic investment, in addition to any other fees that may apply. Your bank or other financial institution may also charge transaction fees.
So let's imagine you sold the VT ETF and paid a one-time $75 fee to buy VTWAX. Regarding the bolded part above, I'm not sure if that means if you'd pay only $5 or $5 + $75 for each subsequent automatic investment of VTWAX. The language they use is not clear to me, so I suggest you call them and ask. Maybe paying only $5/purchase is not too much for you?
I'm going to call and ask about these. If they're $75/buy then neither VT or VTWAX would be worth the buys.
VT is an ETF and should be commission free in your Fidelity HSA.
nalor511
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Re: Fidelity HSA - switch to VTWAX?

Post by nalor511 »

Just log in when you have the cash and invest manually, fidelity let's you do it in dollars.
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passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

camillus wrote: Fri Oct 15, 2021 9:36 pm Are you rebalancing in all your accounts? Why?

The simplest answer is alluded to above in several posts.

Hold FSKAX in your HSA. That's it. Since it's a mutual fund you can set up automatic contributions.

Maintain a spreadsheet that keeps your total asset allocation across all your accounts.

Use one of your larger accounts, like your 401k or an IRA, as a rebalancing account. This might end up being the only account where you have more than one holding!

This way, each of your smaller accounts will have one holding with automatic contributions - you never have to log in to rebalance or buy ETFs. You only ever have to update your spreadsheet and then log in to your rebalancing account and put in a trade between mutual funds to execute at the end of the next business day.

Last I looked, Fidelity mutual funds were cheaper than Vanguard mutual funds and ETFs.
Would FZROX be better then FSKAX since it has zero fees? I'm uncertain why they still offer the mutual fund that has a fee attached to it. Maybe I am missing something?
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passive101
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Re: Fidelity HSA - switch to VTWAX?

Post by passive101 »

nalor511 wrote: Fri Oct 15, 2021 11:27 pm Just log in when you have the cash and invest manually, fidelity let's you do it in dollars.
Someone else posted that their could be a $75 fee for each buy on the ETFs and it looks like $5 is the minimum fee per buy.
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camillus
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Re: Fidelity HSA - switch to VTWAX?

Post by camillus »

passive101 wrote: Sat Oct 16, 2021 12:44 am
camillus wrote: Fri Oct 15, 2021 9:36 pm Are you rebalancing in all your accounts? Why?

The simplest answer is alluded to above in several posts.

Hold FSKAX in your HSA. That's it. Since it's a mutual fund you can set up automatic contributions.

Maintain a spreadsheet that keeps your total asset allocation across all your accounts.

Use one of your larger accounts, like your 401k or an IRA, as a rebalancing account. This might end up being the only account where you have more than one holding!

This way, each of your smaller accounts will have one holding with automatic contributions - you never have to log in to rebalance or buy ETFs. You only ever have to update your spreadsheet and then log in to your rebalancing account and put in a trade between mutual funds to execute at the end of the next business day.

Last I looked, Fidelity mutual funds were cheaper than Vanguard mutual funds and ETFs.
Would FZROX be better then FSKAX since it has zero fees? I'm uncertain why they still offer the mutual fund that has a fee attached to it. Maybe I am missing something?
They are basically equivalent. For every $10,000 in FSKAX, you would pay $1.50 per year in fees more than FZROX. If time is money, then your time deciding between these two funds is basically worthless.
51% US / 34% ex-US / 15% “bond”
Laundry_Service
Posts: 272
Joined: Wed Sep 15, 2010 11:52 am

Re: Fidelity HSA - switch to VTWAX?

Post by Laundry_Service »

passive101 wrote: Sat Oct 16, 2021 12:44 am Would FZROX be better then FSKAX since it has zero fees? I'm uncertain why they still offer the mutual fund that has a fee attached to it. Maybe I am missing something?
Doesn't matter, really. I am 100% FZROX in my Fidelity HSA. Whichever one performs better likely won't be by any significant amount.
stefan_lec
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Re: Fidelity HSA - switch to VTWAX?

Post by stefan_lec »

passive101 wrote: Sat Oct 16, 2021 12:47 am
nalor511 wrote: Fri Oct 15, 2021 11:27 pm Just log in when you have the cash and invest manually, fidelity let's you do it in dollars.
Someone else posted that their could be a $75 fee for each buy on the ETFs and it looks like $5 is the minimum fee per buy.
No, the $75 and $5 fees are only for buying VTWAX (the mutual fund). Buying VT (the ETF) doesn't incur these fees, but you can't do automatic investment with an ETF.
Portfolio: 80% VT, 20% BNDW/I-bonds/VTEB/HYSA
sycamore
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Re: Fidelity HSA - switch to VTWAX?

Post by sycamore »

passive101 wrote: Sat Oct 16, 2021 12:47 am
nalor511 wrote: Fri Oct 15, 2021 11:27 pm Just log in when you have the cash and invest manually, fidelity let's you do it in dollars.
Someone else posted that their could be a $75 fee for each buy on the ETFs and it looks like $5 is the minimum fee per buy.
The $75 fee is only for the mutual fund, not the ETF share class.

Best to go to the Fidelity web site, search for the specific fund (whether mutual fund or ETF) and see what they say the fee is.
Sage16
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Re: Fidelity HSA - switch to VTWAX?

Post by Sage16 »

I use a Fidelity Freedom target date fund for my HSA to get a balanced portfolio cheap. The HSA uses the Institutional premium class for the TDF so the ER is just .08.

We will deplete my account before touching DW's, so she has a longer term investment and uses 100% FXAIX (S&P 500).
Bogle on investing: Diversify, focus on low costs, invest for the long term. Don't speculate and don't be distracted by volatility.
nalor511
Posts: 1959
Joined: Mon Jul 27, 2015 1:00 am

Re: Fidelity HSA - switch to VTWAX?

Post by nalor511 »

passive101 wrote: Sat Oct 16, 2021 12:47 am
nalor511 wrote: Fri Oct 15, 2021 11:27 pm Just log in when you have the cash and invest manually, fidelity let's you do it in dollars.
Someone else posted that their could be a $75 fee for each buy on the ETFs and it looks like $5 is the minimum fee per buy.
This is just wrong, there is no fee for the ETF, I just bought $1.06 worth on Friday, no fees.
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