Fidelity Expands Their Index Fund Lineup
Re: Fidelity Expands Their Index Fund Lineup
Just bought $10k in my taxable account. I have FTABX in there now with capital gains, so I guess this will be my new taxable bond fund.
Consistently sets low goals and fails to achieve them.
Re: Fidelity Expands Their Index Fund Lineup
I’m not afraid of ETFs I just prefer the simplicity of mutual funds. Vanguard sucks $2000/mo from my checking account into VTSAX. If I were using VTI I’d have to either switch to a company that provides automated ETF investing or place the order manually every month.
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Re: Fidelity Expands Their Index Fund Lineup
Really?? Great news! Where did you find them?
EDIT Found them. Thank you nedsaid.
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Re: Fidelity Expands Their Index Fund Lineup
Because I prefer mutual funds to ETFs. I'm also interested in seeing how the composition of FMBIX differs from MUB and VTEAX/VTEB.mervinj7 wrote: ↑Wed Jul 17, 2019 5:03 pmOk, I'll bite. Why would one choose it over MUB which is also 0.07% ER? I went ahead and placed a $1k order just to get my feet wet.UpperNwGuy wrote: ↑Tue Jul 16, 2019 8:57 am Fidelity Municipal Bond Index Fund FMBIX .07% is the one that interests me.
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Re: Fidelity Expands Their Index Fund Lineup
Any way to find out the SEC yield on FMBIX?jbranx wrote: ↑Wed Jul 17, 2019 1:39 am Fidelity has launched these funds. I just put in an order for FMBIX, the Fido Municipal Bond Index Fund tonight. I saw a news report on Bloomberg that they were launched. I didn't check the other funds, but I presume like the muni fund that about all the info currently available is a link to the prospectus. It's cost is the promised .07 bp; A. Johnson was quoted in the news piece saying the other offerings were cheaper than the funds from you know who.
Re: Fidelity Expands Their Index Fund Lineup
Easier to put all of my extra cash in a mutual fund. Just buy a dollar amount rather than shares.mervinj7 wrote: ↑Wed Jul 17, 2019 5:03 pmOk, I'll bite. Why would one choose it over MUB which is also 0.07% ER? I went ahead and placed a $1k order just to get my feet wet.UpperNwGuy wrote: ↑Tue Jul 16, 2019 8:57 am Fidelity Municipal Bond Index Fund FMBIX .07% is the one that interests me.
Re: Fidelity Expands Their Index Fund Lineup
Plus, it appears that the Fidelity Fund includes AMT bonds whereas MUB does not. Hence, an investor who is subject to the AMT would likely prefer MUB whereas an investor who is not subject to the AMT would likely prefer FMBIX due to a likely higher yield. There may be other differences as well (e.g. duration, credit quality) that can be analyzed once Fidelity publishes information on holdings for FMBIX.Cash wrote: ↑Wed Jul 17, 2019 8:06 pmEasier to put all of my extra cash in a mutual fund. Just buy a dollar amount rather than shares.mervinj7 wrote: ↑Wed Jul 17, 2019 5:03 pmOk, I'll bite. Why would one choose it over MUB which is also 0.07% ER? I went ahead and placed a $1k order just to get my feet wet.UpperNwGuy wrote: ↑Tue Jul 16, 2019 8:57 am Fidelity Municipal Bond Index Fund FMBIX .07% is the one that interests me.
Re: Fidelity Expands Their Index Fund Lineup
Where do you see that it includes AMT bonds? I just read that it *may* include them.gjlynch17 wrote: ↑Wed Jul 17, 2019 8:13 pmPlus, it appears that the Fidelity Fund includes AMT bonds whereas MUB does not. Hence, an investor who is subject to the AMT would likely prefer MUB whereas an investor who is not subject to the AMT would likely prefer FMBIX due to a likely higher yield. There may be other differences as well (e.g. duration, credit quality) that can be analyzed once Fidelity publishes information on holdings for FMBIX.Cash wrote: ↑Wed Jul 17, 2019 8:06 pmEasier to put all of my extra cash in a mutual fund. Just buy a dollar amount rather than shares.mervinj7 wrote: ↑Wed Jul 17, 2019 5:03 pmOk, I'll bite. Why would one choose it over MUB which is also 0.07% ER? I went ahead and placed a $1k order just to get my feet wet.UpperNwGuy wrote: ↑Tue Jul 16, 2019 8:57 am Fidelity Municipal Bond Index Fund FMBIX .07% is the one that interests me.
Re: Fidelity Expands Their Index Fund Lineup
You are correct that the prospectus says that it may include AMT bonds not that it will. However, as FMBIX is an index fund that seeks to track the Bloomberg Barclays Municipal Bond Index (which I believe includes AMT bonds), I anticipate that FMBIX will contain AMT bonds. Neither the iShares (MUB) nor Vanguard (VTEAX/VTEB) contain AMT bonds so for high tax bracket investors who are not subject to the AMT the new Fidelity fund could offer a higher yield.
I am eager to see the initial portfolio and the first year performance of FMBIX.
Re: Fidelity Expands Their Index Fund Lineup
It's probably going to be very close to the current SEC yield of VTEB: 1.92%. Duration seems to match with the S&P Muni Index Vanguard and Ishares MUB use. If they allow in the AMT bonds, they might pick up a little more yield. They are also doing sampling, so maybe they could find a little more yield somewhere. But I'm guessing it will be close to those two and close to FTABX, which is still charging .25 bp. I haven't mined the Fido prospectus, but the S&P index precludes investing in Puerto Rico and territories I recall.bck63 wrote: ↑Wed Jul 17, 2019 6:56 pmAny way to find out the SEC yield on FMBIX?jbranx wrote: ↑Wed Jul 17, 2019 1:39 am Fidelity has launched these funds. I just put in an order for FMBIX, the Fido Municipal Bond Index Fund tonight. I saw a news report on Bloomberg that they were launched. I didn't check the other funds, but I presume like the muni fund that about all the info currently available is a link to the prospectus. It's cost is the promised .07 bp; A. Johnson was quoted in the news piece saying the other offerings were cheaper than the funds from you know who.
Re: Fidelity Expands Their Index Fund Lineup
Do you guys think it is ok to invest a large chunk 200k+ in FMBIX or should I wait and see how it performs?
Re: Fidelity Expands Their Index Fund Lineup
Since it's an index they are matching, I don't see any reason to think they will not be able to do it well. Fidelity's expertise in both indexing and bond investing is state of the art as far as I can tell. I'm not as familiar with the Bloomberg/Barclay's muni index as I am the Barclay's Agg, but it should be just as robust as one from a ratings agency. Given how fast Fido has gathered assets for the zero index funds, i would think they will get enough money in the fund early on to do well.
Re: Fidelity Expands Their Index Fund Lineup
I live in Washington State.
How do I find/calculate what the "State" taxes would be on money invested in 'FMBIX - Fidelity® Municipal Bond Index Fund' (held in a Taxable account)?
Or, does it not apply at all since Washington State has no State Income Tax?
Thanks
How do I find/calculate what the "State" taxes would be on money invested in 'FMBIX - Fidelity® Municipal Bond Index Fund' (held in a Taxable account)?
Or, does it not apply at all since Washington State has no State Income Tax?
Thanks
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Re: Fidelity Expands Their Index Fund Lineup
I can find no indication of how many different bonds are held by FMBIX.
I was hoping it would rival the 8,621 held by Vanguard Intermediate-Term Tax-Exempt (VWIUX).
I was hoping it would rival the 8,621 held by Vanguard Intermediate-Term Tax-Exempt (VWIUX).
Re: Fidelity Expands Their Index Fund Lineup
ribonucleic wrote: ↑Thu Jul 25, 2019 5:51 pm I can find no indication of how many different bonds are held by FMBIX.
I was hoping it would rival the 8,621 held by Vanguard Intermediate-Term Tax-Exempt (VWIUX).
They need investors to contribute $$$ in order to purchase bonds.
Re: Fidelity Expands Their Index Fund Lineup
I was trying to preview an order with this fund. It seems there a limit of max 100k I can use to buy this fund. Seems very strangejbranx wrote: ↑Wed Jul 17, 2019 10:44 pmSince it's an index they are matching, I don't see any reason to think they will not be able to do it well. Fidelity's expertise in both indexing and bond investing is state of the art as far as I can tell. I'm not as familiar with the Bloomberg/Barclay's muni index as I am the Barclay's Agg, but it should be just as robust as one from a ratings agency. Given how fast Fido has gathered assets for the zero index funds, i would think they will get enough money in the fund early on to do well.
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Re: Fidelity Expands Their Index Fund Lineup
Perhaps they are trying to avoid getting too much money all at once so they don't move the underlying markets or have cash drag?JD13 wrote: ↑Thu Jul 25, 2019 6:46 pmI was trying to preview an order with this fund. It seems there a limit of max 100k I can use to buy this fund. Seems very strangejbranx wrote: ↑Wed Jul 17, 2019 10:44 pmSince it's an index they are matching, I don't see any reason to think they will not be able to do it well. Fidelity's expertise in both indexing and bond investing is state of the art as far as I can tell. I'm not as familiar with the Bloomberg/Barclay's muni index as I am the Barclay's Agg, but it should be just as robust as one from a ratings agency. Given how fast Fido has gathered assets for the zero index funds, i would think they will get enough money in the fund early on to do well.
Re: Fidelity Expands Their Index Fund Lineup
Did you try doing multiple orders of $100k each?JD13 wrote: ↑Thu Jul 25, 2019 6:46 pmI was trying to preview an order with this fund. It seems there a limit of max 100k I can use to buy this fund. Seems very strangejbranx wrote: ↑Wed Jul 17, 2019 10:44 pmSince it's an index they are matching, I don't see any reason to think they will not be able to do it well. Fidelity's expertise in both indexing and bond investing is state of the art as far as I can tell. I'm not as familiar with the Bloomberg/Barclay's muni index as I am the Barclay's Agg, but it should be just as robust as one from a ratings agency. Given how fast Fido has gathered assets for the zero index funds, i would think they will get enough money in the fund early on to do well.
Re: Fidelity Expands Their Index Fund Lineup
That should work, but the customer care was unable to provide any reasoning as to why that is
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Re: Fidelity Expands Their Index Fund Lineup
I ran into that with one fund when I was first moving my money into Fidelity index funds. As you suggested, I was able to place a second order to buy the rest. Does anyone know why they do this?
Re: Fidelity Expands Their Index Fund Lineup
Correct. Washington State residents have no state tax considerations. Muni funds are tax-free for us as long as they are federal tax-exempt. Of course, this also makes such funds less attractive relative to taxable funds.
A useful razor: anyone asking about speculative strategies on Bogleheads.org has no business using them.