Looks like Fidelity is doing what they've done with their target date funds - one fund is actively invested and another is invested in passive funds.Are there investing options designed specifically to help save for health care?
Yes, Fidelity is pleased to introduce two new mutual funds created for investors who want to save for future medical expenses.
Because the time horizon of health care expenses is uncertain, the funds
- Follow an asset allocation strategy designed to balance growth and risk through different market environments
- Help take the guesswork out of managing an investment portfolio to save for health care expenses.
The actively managed Fidelity Health Savings Fund FHLSX with 0.47% expense ratio. Approx 27% equities, 71% bonds, 2% short-term.
The other is Fidelity Health Savings Index Fund with 0.17% ER. Approx 38% equities and 62 bonds.
Both invest about 30-35% of equities in international stocks. Both have an inception date of 3/2/2020.
I can see the funds being targeted to people who aren't sure how to invest their HSA money. Of course one could get a similar balanced fund at lower ER via a Fidelity Freedom Index Funds.
Anyone interested in using either new fund? Personally I'm sticking with a Freedom Index Fund at my desired AA (FFEDX/2025)