New Fidelity Freedom Funds?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
pkcrafter
Posts: 12811
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

New Fidelity Freedom Funds?

Post by pkcrafter » Fri Jun 15, 2018 11:08 pm

Fidelity Investments, which has been cutting prices to compete with low-cost rivals such as Vanguard Group and Charles Schwab Corp., is trimming fees on the target-date index funds it sells to retirement plans and rolling out new offerings that combine active and passive strategies.
https://finance.yahoo.com/news/fidelity ... 25946.html

Special Report: Fidelity puts 6 million savers on risky path to retirement

https://www.reuters.com/article/us-fund ... SKBN1GH1SI

I can't find any information at Fidelity on the new funds.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

baliktad
Posts: 30
Joined: Sun Mar 26, 2017 12:13 pm

Re: New Fidelity Freedom Funds?

Post by baliktad » Sat Jun 16, 2018 12:53 am

The SEC Filings show an effective date of Aug 30, 2018, which is presumably the launch date of these new funds labeled "Fidelity Freedom Blend 20## Fund." These "Blend" funds are evidently meant to occupy a middle ground between the existing (actively managed) Fidelity Freedom funds and their Vanguard-compete Fidelity Freedom Index funds:
Investing primarily in a combination of Fidelity® domestic equity funds, international equity funds, bond funds, and short-term funds (underlying Fidelity® funds), some of which are actively managed and others of which are passively managed, meaning they seek to provide investment results that correspond to the total return of a specific index.
Examining the expense ratios by fund family should tell you everything you need to know:

Fidelity Freedom Funds: 0.47% to 0.75%
Fidelity Freedom Blend Funds: 0.46% to 0.54%
Fidelity Freedom Index Funds: 0.15% (evidently soon to be reduced to 0.14%

User avatar
davidkw
Posts: 772
Joined: Sun Feb 25, 2007 6:39 pm
Location: Sterling, VA

Re: New Fidelity Freedom Funds?

Post by davidkw » Sat Jun 16, 2018 6:19 am

Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target

It never has shown up. When you do a search on the Fidelity site, they do show up. I check them from time to time, since I like the Fidelity glide path. However, I am staying with Vanguard for now.

If you go to Schwab, they show both the active and index target retirement funds: Schwab Target
David | | From Jack Brennan's "Straight Talk on Investing", page 23 "Living below your means is the ultimate financial strategy"

pkcrafter
Posts: 12811
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: New Fidelity Freedom Funds?

Post by pkcrafter » Sat Jun 16, 2018 6:22 pm

baliktad wrote:
Sat Jun 16, 2018 12:53 am
The SEC Filings show an effective date of Aug 30, 2018, which is presumably the launch date of these new funds labeled "Fidelity Freedom Blend 20## Fund." These "Blend" funds are evidently meant to occupy a middle ground between the existing (actively managed) Fidelity Freedom funds and their Vanguard-compete Fidelity Freedom Index funds:
Investing primarily in a combination of Fidelity® domestic equity funds, international equity funds, bond funds, and short-term funds (underlying Fidelity® funds), some of which are actively managed and others of which are passively managed, meaning they seek to provide investment results that correspond to the total return of a specific index.
Examining the expense ratios by fund family should tell you everything you need to know:

Fidelity Freedom Funds: 0.47% to 0.75%
Fidelity Freedom Blend Funds: 0.46% to 0.54%
Fidelity Freedom Index Funds: 0.15% (evidently soon to be reduced to 0.14%
Thanks for the additional information. It doesn't make much sense to leave the ERs where they were if they are trying to get more investors interested.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

pkcrafter
Posts: 12811
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: New Fidelity Freedom Funds?

Post by pkcrafter » Sat Jun 16, 2018 6:26 pm

davidkw wrote:
Sat Jun 16, 2018 6:19 am
Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target

It never has shown up.
Very true, and annoying! :annoyed

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

User avatar
Duckie
Posts: 5708
Joined: Thu Mar 08, 2007 2:55 pm

Re: New Fidelity Freedom Funds?

Post by Duckie » Sat Jun 16, 2018 7:06 pm

davidkw wrote:Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target
You have to know how to work the system: Fidelity "Allocation" Funds.

pkcrafter
Posts: 12811
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: New Fidelity Freedom Funds?

Post by pkcrafter » Sat Jun 16, 2018 7:38 pm

Duckie wrote:
Sat Jun 16, 2018 7:06 pm
davidkw wrote:Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target
You have to know how to work the system: Fidelity "Allocation" Funds.
Thanks Duckie, but if you don't know this, search won't pull it anything helpful. :happy
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

2pedals
Posts: 447
Joined: Wed Dec 31, 2014 12:31 pm

Re: New Fidelity Freedom Funds?

Post by 2pedals » Sat Jun 16, 2018 8:39 pm

davidkw wrote:
Sat Jun 16, 2018 6:19 am
Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target

It never has shown up. When you do a search on the Fidelity site, they do show up. I check them from time to time, since I like the Fidelity glide path. However, I am staying with Vanguard for now.

If you go to Schwab, they show both the active and index target retirement funds: Schwab Target
I never noticed this before. Thanks for pointing this out.

radiowave
Posts: 1708
Joined: Thu Apr 30, 2015 5:01 pm

Re: New Fidelity Freedom Funds?

Post by radiowave » Mon Jun 18, 2018 5:30 pm

davidkw wrote:
Sat Jun 16, 2018 6:19 am
Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target

It never has shown up. When you do a search on the Fidelity site, they do show up. I check them from time to time, since I like the Fidelity glide path. However, I am staying with Vanguard for now.

If you go to Schwab, they show both the active and index target retirement funds: Schwab Target
I checked on Fidelity and the target date funds above are institutional not retail. Can anyone say if the Schwab target date fund at ER 0.08% is available to retail investors?
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

Spirit Rider
Posts: 8101
Joined: Fri Mar 02, 2007 2:39 pm

Re: New Fidelity Freedom Funds?

Post by Spirit Rider » Mon Jun 18, 2018 6:43 pm

radiowave wrote:
Mon Jun 18, 2018 5:30 pm
davidkw wrote:
Sat Jun 16, 2018 6:19 am
Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target

It never has shown up. When you do a search on the Fidelity site, they do show up. I check them from time to time, since I like the Fidelity glide path. However, I am staying with Vanguard for now.

If you go to Schwab, they show both the active and index target retirement funds: Schwab Target
I checked on Fidelity and the target date funds above are institutional not retail. Can anyone say if the Schwab target date fund at ER 0.08% is available to retail investors?
You didn't look too hard. If you select the "Asset Allocation" tab, scroll to the bottom and select the "Research all Fidelity asset allocation funds". You will find that there are both Institutional Premium Class funds at 0.08% and Investor Class funds at 0.14%.

radiowave
Posts: 1708
Joined: Thu Apr 30, 2015 5:01 pm

Re: New Fidelity Freedom Funds?

Post by radiowave » Mon Jun 18, 2018 7:33 pm

You didn't look too hard. If you select the "Asset Allocation" tab, scroll to the bottom and select the "Research all Fidelity asset allocation funds". You will find that there are both Institutional Premium Class funds at 0.08% and Investor Class funds at 0.14%.
I think you misread my post, I saw the Fidelity note for the institutional index fund. I was asking about the Schwab Target Date Index fund. I actually went on line to their chat room and they confirmed the 0.08% ER for their target date is for all clients
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

capjak
Posts: 38
Joined: Fri Sep 22, 2017 8:58 am

Re: New Fidelity Freedom Funds?

Post by capjak » Mon Jun 18, 2018 8:44 pm

Of course I just told my 25 year old teacher daughter to put her 403b in Fidelity Freedom Fund 2055.....ugh....expense looks horrible

Post Reply