Anyone use “baskets”at fidelity?

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grok87
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Anyone use “baskets”at fidelity?

Post by grok87 » Sat Jun 23, 2018 11:03 am

Fidelity has this thing where you can group a bunch of individual stocks into a basket and trade them as a unit.
...
https://www.fidelity.com/webcontent/ap0 ... ding.shtml
...
Anybody use this?
I’m thinking about doing this for Reits as discussed in this thread
viewtopic.php?f=10&t=251961
Cheers
Grok
Keep calm and Boglehead on. KCBO.

ResearchMed
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Re: Anyone use “baskets”at fidelity?

Post by ResearchMed » Sat Jun 23, 2018 11:11 am

grok87 wrote:
Sat Jun 23, 2018 11:03 am
Fidelity has this thing where you can group a bunch of individual stocks into a basket and trade them as a unit.
...
https://www.fidelity.com/webcontent/ap0 ... ding.shtml
...
Anybody use this?
I’m thinking about doing this for Reits as discussed in this thread
viewtopic.php?f=10&t=251961
Cheers
Grok
Interesting idea; I hadn't heard of it.
I guess one is creating one's own little mutual fund/ETF?

But I don't like the forced market orders, and for all of the holdings at the same time.
I doubt I'd be interested, for that reason alone.

RM
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Blueskies123
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Re: Anyone use “baskets”at fidelity?

Post by Blueskies123 » Sat Jun 23, 2018 11:13 am

I used them a few times a long time ago, maybe 10 years ago but I could be wrong on the time frame. I think they are OK if you want to build a portfolio of 5-12 stocks over time and do not want to hassle with individual orders on a monthly basis. At some point I sold them because keeping track of a dozen stocks become time consuming since I liked to keep close eye on them.
Since I retired I sold all my individual stocks and bought a few ETFs. I suppose you could you use them to steadily purchase the same ETFs over time. I am now in the distribution stage of my portfolio so I have no need to make monthly purchases.

grok87
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Re: Anyone use “baskets”at fidelity?

Post by grok87 » Sat Jun 23, 2018 3:23 pm

Blueskies123 wrote:
Sat Jun 23, 2018 11:13 am
I used them a few times a long time ago, maybe 10 years ago but I could be wrong on the time frame. I think they are OK if you want to build a portfolio of 5-12 stocks over time and do not want to hassle with individual orders on a monthly basis. At some point I sold them because keeping track of a dozen stocks become time consuming since I liked to keep close eye on them.
Since I retired I sold all my individual stocks and bought a few ETFs. I suppose you could you use them to steadily purchase the same ETFs over time. I am now in the distribution stage of my portfolio so I have no need to make monthly purchases.
Thanks
Keep calm and Boglehead on. KCBO.

grok87
Posts: 8302
Joined: Tue Feb 27, 2007 9:00 pm

Re: Anyone use “baskets”at fidelity?

Post by grok87 » Sat Jun 23, 2018 3:25 pm

ResearchMed wrote:
Sat Jun 23, 2018 11:11 am
grok87 wrote:
Sat Jun 23, 2018 11:03 am
Fidelity has this thing where you can group a bunch of individual stocks into a basket and trade them as a unit.
...
https://www.fidelity.com/webcontent/ap0 ... ding.shtml
...
Anybody use this?
I’m thinking about doing this for Reits as discussed in this thread
viewtopic.php?f=10&t=251961
Cheers
Grok
Interesting idea; I hadn't heard of it.
I guess one is creating one's own little mutual fund/ETF?

But I don't like the forced market orders, and for all of the holdings at the same time.
I doubt I'd be interested, for that reason alone.

RM
Thanks.if I do it I guess i’ll Stick to stocks with high liquidity
Keep calm and Boglehead on. KCBO.

lack_ey
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Re: Anyone use “baskets”at fidelity?

Post by lack_ey » Sat Jun 23, 2018 3:43 pm

So you end up placing market orders for several securities simultaneously, paying commissions on each of them?

It seems like not much of a convenience feature for a smaller grouping and then too expensive (commissions) for a larger grouping.

grok87
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Re: Anyone use “baskets”at fidelity?

Post by grok87 » Sat Jun 23, 2018 4:45 pm

lack_ey wrote:
Sat Jun 23, 2018 3:43 pm
So you end up placing market orders for several securities simultaneously, paying commissions on each of them?

It seems like not much of a convenience feature for a smaller grouping and then too expensive (commissions) for a larger grouping.
My plan would be to set up a basket or REIT stocks. I’m not sure how many yet. I think for me it would be mostly for convenience. I’m curious if anyone has ever had any problems with these baskets. For example one of the points of doing this, aside from the lower taxation on dividends, is the potential for tax loss harvesting of the individual stock positions.
Keep calm and Boglehead on. KCBO.

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Mursili
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Re: Anyone use “baskets”at fidelity?

Post by Mursili » Sat Jun 23, 2018 5:58 pm

I have used baskets quite a bit at Fidelity to play around with the Magic Formula method. I found that it worked very well at purchasing a set of stocks. Because of the nature of the method, I ended up selling those stocks individually and never as a basket.
When it comes to havoc, no one wreaks like me! - Dr. Heinz Doofenshmirtz

grok87
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Re: Anyone use “baskets”at fidelity?

Post by grok87 » Sat Jun 23, 2018 7:41 pm

Mursili wrote:
Sat Jun 23, 2018 5:58 pm
I have used baskets quite a bit at Fidelity to play around with the Magic Formula method. I found that it worked very well at purchasing a set of stocks. Because of the nature of the method, I ended up selling those stocks individually and never as a basket.
Thanks. So were there any unexpected hassles when you sold the individual stocks? Also can you add and drop a stock name from a basket easily?
Keep calm and Boglehead on. KCBO.

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Mursili
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Re: Anyone use “baskets”at fidelity?

Post by Mursili » Sat Jun 23, 2018 9:31 pm

Each stock appeared in "Positions" as it's own position. It was just as easy to trade a position purchased in a basket as any other position held in the account.
When it comes to havoc, no one wreaks like me! - Dr. Heinz Doofenshmirtz

grok87
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Joined: Tue Feb 27, 2007 9:00 pm

Re: Anyone use “baskets”at fidelity?

Post by grok87 » Sun Jun 24, 2018 5:04 am

Mursili wrote:
Sat Jun 23, 2018 9:31 pm
Each stock appeared in "Positions" as it's own position. It was just as easy to trade a position purchased in a basket as any other position held in the account.
Thanks
Keep calm and Boglehead on. KCBO.

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