Any Bogleheads invest in Fidelity Select Retail and Select Software I.T.

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fortfun
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Any Bogleheads invest in Fidelity Select Retail and Select Software I.T.

Post by fortfun » Sun Sep 02, 2018 6:34 pm

Okay, I know it isn't the Boglehead thing to do but the fees aren't horrible and they've delivered great (1,3,5, and 10yr/inception) returns (past performance no guarantee....). It seems like it would take a real dooms day scenario for all of their funds to tank (in the long term) and if that happened the index would probably crash too. I've got a small amount in both, from a previous job, and every time I check the returns I can't believe I don't have more of my retirement there. Do any Bogleheads take a little more risk? It isn't like buying an individual stock.

gostars
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Re: Any Bogleheads invest in Fidelity Select Retail and Select Software I.T.

Post by gostars » Sun Sep 02, 2018 9:56 pm

The fees are pretty horrible at .73% for FSCSX (Software and IT) and .78% for FSRPX (Retailing). If you want sector funds, and I'm not saying they're a good idea, there are far cheaper options, like FTEC/VGIT for tech and FDIS/VCR for consumer discretionary (smilar holdings to retailing).

Comparing returns of funds that excel in bull markets over what has been a nearly 10 year bull run is serious cherrypicking. If/when FAANG+M go on a serious downturn, those funds in particular are going to get crushed because of how much they rely on those few companies. The entire market as a whole will feel it too, but not quite as bad since there are others that can help carry it.

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fortfun
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Re: Any Bogleheads invest in Fidelity Select Retail and Select Software I.T.

Post by fortfun » Sun Sep 02, 2018 10:19 pm

gostars wrote:
Sun Sep 02, 2018 9:56 pm
The fees are pretty horrible at .73% for FSCSX (Software and IT) and .78% for FSRPX (Retailing). If you want sector funds, and I'm not saying they're a good idea, there are far cheaper options, like FTEC/VGIT for tech and FDIS/VCR for consumer discretionary (smilar holdings to retailing).

Comparing returns of funds that excel in bull markets over what has been a nearly 10 year bull run is serious cherrypicking. If/when FAANG+M go on a serious downturn, those funds in particular are going to get crushed because of how much they rely on those few companies. The entire market as a whole will feel it too, but not quite as bad since there are others that can help carry it.
Thanks gostars. Those less expensive funds must not be available on my plan, at least I don't see them. Your answer is what I expected. 99.9% of our retirement is in the recommended Boglehead 3 fund portfolio, however, it is fun to watch my little "play money" pot grow!

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fortfun
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Re: Any Bogleheads invest in Fidelity Select Retail and Select Software I.T.

Post by fortfun » Sun Sep 02, 2018 10:47 pm

gostars wrote:
Sun Sep 02, 2018 9:56 pm
The fees are pretty horrible at .73% for FSCSX (Software and IT) and .78% for FSRPX (Retailing). If you want sector funds, and I'm not saying they're a good idea, there are far cheaper options, like FTEC/VGIT for tech and FDIS/VCR for consumer discretionary (smilar holdings to retailing).

Comparing returns of funds that excel in bull markets over what has been a nearly 10 year bull run is serious cherrypicking. If/when FAANG+M go on a serious downturn, those funds in particular are going to get crushed because of how much they rely on those few companies. The entire market as a whole will feel it too, but not quite as bad since there are others that can help carry it.
Not even cherry picking, it looks like these funds have done very well for almost 30 years. Doesn't look like they took it much harder than VTI durning the recession (as far as I can tell).

https://quotes.morningstar.com/chart/fu ... A%5B%5D%7D

HEDGEFUNDIE
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Re: Any Bogleheads invest in Fidelity Select Retail and Select Software I.T.

Post by HEDGEFUNDIE » Sun Sep 02, 2018 11:15 pm

I don’t think this fund is a good idea, mainly because these stocks are already super well represented in the full market indices, and because of the expense ratio. If you do want to tilt tech, there are better themes that are still playing themselves out under-the-radar. For example, Bessemer’s cloud computing index: https://www.bvp.com/strategy/cloud-computing/index

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