Any Disavantage to Buying Fidelity Funds at Vanguard?

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Cheego
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Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by Cheego »

What is the downside of buying a Fidelity fund through my VG taxable account? Been thinking of FIPDX (TIPS fund).
increment
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by increment »

Fees? (For example, $20+ for buying, $20+ for selling.)
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Cheego
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by Cheego »

Thank you. The $20 to buy/sell isn't horrible considering its a large sum of money and I don't want to set up a Fidelity account just to own one mutual fund.
mervinj7
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by mervinj7 »

Cheego wrote: Wed Oct 13, 2021 7:35 pm Thank you. The $20 to buy/sell isn't horrible considering its a large sum of money and I don't want to set up a Fidelity account just to own one mutual fund.
Is there a similar vanguard one?
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SmileyFace
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by SmileyFace »

Poorer customer service. Poorer website. No free named advisor. No 24/7 support. (As compared to buying the fund at Fidelity).
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by sycamore »

mervinj7 wrote: Wed Oct 13, 2021 7:56 pm
Cheego wrote: Wed Oct 13, 2021 7:35 pm Thank you. The $20 to buy/sell isn't horrible considering its a large sum of money and I don't want to set up a Fidelity account just to own one mutual fund.
Is there a similar vanguard one?
VAIPX. FIPDX follows an index whereas the Vanguard VAIPX does not. But they're very similar, and so is iShares' "TIP" ETF. Performance has been nearly the same for those three funds.
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Cheego
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by Cheego »

sycamore wrote: Wed Oct 13, 2021 8:45 pm
mervinj7 wrote: Wed Oct 13, 2021 7:56 pm
Cheego wrote: Wed Oct 13, 2021 7:35 pm Thank you. The $20 to buy/sell isn't horrible considering its a large sum of money and I don't want to set up a Fidelity account just to own one mutual fund.
Is there a similar vanguard one?
VAIPX. FIPDX follows an index whereas the Vanguard VAIPX does not. But they're very similar, and so is iShares' "TIP" ETF. Performance has been nearly the same for those three funds.
Thanks for the link. If I recalled correctly, VAIPX is an intermediate term fund and FIPDX is a combination of short, intermediate, and long term. That's really all I know though.
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by mervinj7 »

Cheego wrote: Wed Oct 13, 2021 8:49 pm
sycamore wrote: Wed Oct 13, 2021 8:45 pm
mervinj7 wrote: Wed Oct 13, 2021 7:56 pm
Cheego wrote: Wed Oct 13, 2021 7:35 pm Thank you. The $20 to buy/sell isn't horrible considering its a large sum of money and I don't want to set up a Fidelity account just to own one mutual fund.
Is there a similar vanguard one?
VAIPX. FIPDX follows an index whereas the Vanguard VAIPX does not. But they're very similar, and so is iShares' "TIP" ETF. Performance has been nearly the same for those three funds.
Thanks for the link. If I recalled correctly, VAIPX is an intermediate term fund and FIPDX is a combination of short, intermediate, and long term. That's really all I know though.
In that case, maybe the better question is why do you want this particular asset class and duration?

My vote is for VTIP.
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by Dude2 »

I think the idea behind choosing FIPDX is for the market to decide duration based on the proportions of bonds (similar to TBM). Although long TIPS might be the right answer if our need for the money is far out, I find it difficult to hold long bonds. On the other hand, white papers tell us that short TIPS track inflation the best and are used in target date funds. A person might then conclude to split the difference and hold intermediate term. The need for TIPS at all is probably called into question. After all of the dust settles, probably not the subject of this thread, a simple approach could be FIPDX.
Then ’tis like the breath of an unfee’d lawyer.
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8foot7
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by 8foot7 »

I think it's a poor idea. You pay more to buy the same thing, get worse service while you have it, and then pay more to get rid of it. If you want a Fidelity fund, buy it at Fidelity, and while you're at it, move your VG funds over and collect a nice bonus.
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by sycamore »

8foot7 wrote: Thu Oct 14, 2021 5:45 am I think it's a poor idea. You pay more to buy the same thing, get worse service while you have it, and then pay more to get rid of it. If you want a Fidelity fund, buy it at Fidelity, and while you're at it, move your VG funds over and collect a nice bonus.
I don't think Fidelity is offering a bonus for transferring funds over. At least not currently.
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Cheego
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by Cheego »

Does Fidelity have a fee to buy/sell VG funds?
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by sycamore »

Cheego wrote: Thu Oct 14, 2021 8:06 am Does Fidelity have a fee to buy/sell VG funds?
Yes it does. I believe it's $75. At least it is for VIPSX - Vanguard Inflation-Protected Securities Fund Investor Shares.
https://fundresearch.fidelity.com/mutua ... /922031869

Also note that not all Vanguard funds are even available at Fidelity. For example VIPSX is available but the Admiral share class of the same fund (VAIPX) is not. In general, I think the Admiral share class is available for index funds but not for active funds.
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by dbr »

Cheego wrote: Thu Oct 14, 2021 8:06 am Does Fidelity have a fee to buy/sell VG funds?
Not for ETFs. But yes for funds.
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Re: Any Disavantage to Buying Fidelity Funds at Vanguard?

Post by calmaniac »

I routinely buy Vanguard ETFs at Schwab with zero fees. I believe this may be a function of my account balance, but have not looked into the details.

Having that kind of flexibility and not being locked into the products of your custodian is wonderful.
AA 70/30: 30% S&P, 16% SCV&LCV, 14% intl, 10% EM, 30% short/int govt bonds. Pension now ≈60% of expenses. Taking SS @age 70--> pension+SS ≈100% of expenses. What me worry?
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