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
RIP Mr. Bogle.

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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
This signature is a placebo. You are in the control group.

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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.

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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
RIP Mr. Bogle.

Topic Author
grok87
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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
RIP Mr. Bogle.

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.

Topic Author
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.
RIP Mr. Bogle.

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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

Topic Author
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?
RIP Mr. Bogle.

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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

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grok87
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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
RIP Mr. Bogle.

Cash
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Re: Anyone use “baskets”at fidelity?

Post by Cash » Mon Nov 04, 2019 8:24 pm

Grok87, did you ever implement your basket? Curious about this now that trades are free. Does this basically allow you to invest, for instance, a flat $1000 against a basket of ETFs (resulting in fractional shares)? Can you trade baskets in the app?

Maybe jbranx can also weigh in based on comments in another old thread:
jbranx wrote:
Sat Feb 09, 2019 4:49 am
Fidelity allows "basket" trading of stocks and ETFs that you can arrange by shares, dollars, or percents. You'd have to buy the ETF equivalent of the funds if they exist. Under the "Trade link you will see "stocks, funds, options, baskets." Pull up the baskets one and enter the ETF tickers; Fido will maintain the basket and allow you to add money/shares at any time and sell the basket as one trade. Fee is $4.95 per stock/ETF and you cannot set a limit order. I use it all the time for stocks and ETFs. Wish they would do it for funds. Send them note on customer service.

Topic Author
grok87
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Re: Anyone use “baskets”at fidelity?

Post by grok87 » Tue Nov 05, 2019 6:31 am

Cash wrote:
Mon Nov 04, 2019 8:24 pm
Grok87, did you ever implement your basket? Curious about this now that trades are free. Does this basically allow you to invest, for instance, a flat $1000 against a basket of ETFs (resulting in fractional shares)? Can you trade baskets in the app?

Maybe jbranx can also weigh in based on comments in another old thread:
jbranx wrote:
Sat Feb 09, 2019 4:49 am
Fidelity allows "basket" trading of stocks and ETFs that you can arrange by shares, dollars, or percents. You'd have to buy the ETF equivalent of the funds if they exist. Under the "Trade link you will see "stocks, funds, options, baskets." Pull up the baskets one and enter the ETF tickers; Fido will maintain the basket and allow you to add money/shares at any time and sell the basket as one trade. Fee is $4.95 per stock/ETF and you cannot set a limit order. I use it all the time for stocks and ETFs. Wish they would do it for funds. Send them note on customer service.
No because the irs ruled that reit mutual funds would get the tax benefit after all so no need to own individual reits.
RIP Mr. Bogle.

Cash
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Re: Anyone use “baskets”at fidelity?

Post by Cash » Tue Nov 05, 2019 7:06 am

Thanks for the follow up.

In looking into this last night, the terms and conditions say that fractional shares will not be distributed if you invest based on a dollar amount. Instead, they will round down to the nearest whole share. Still, this could be useful to me if I can trade it in the app. I might give it a try later today.

Cash
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Re: Anyone use “baskets”at fidelity?

Post by Cash » Tue Nov 05, 2019 10:29 am

OK I created and purchased a basket. Things I’ve learned:

1. Automatic allocation is nice, but appears to work only when creating the basket. You can input specific dollar amounts for future purchases, but you have to do so for each position.

2. As I noted above, no fractional shares.

3. Basket trading is not supported on the app.

#3 is a dealbreaker for me, so I will probably not use this feature going forward. But I would use it if they add it to the app just to save me the few seconds to calculate the number of shares to purchase for a given position.

perplexed
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Re: Anyone use “baskets”at fidelity?

Post by perplexed » Tue Nov 05, 2019 10:41 am

Cash wrote:
Tue Nov 05, 2019 10:29 am
OK I created and purchased a basket. Things I’ve learned:

1. Automatic allocation is nice, but appears to work only when creating the basket. You can input specific dollar amounts for future purchases, but you have to do so for each position.


-- Are you saying we can't add directly to the basket? I have not tried this myself.

2. As I noted above, no fractional shares.

3. Basket trading is not supported on the app.

#3 is a dealbreaker for me, so I will probably not use this feature going forward. But I would use it if they add it to the app just to save me the few seconds to calculate the number of shares to purchase for a given position.

Thank you so much..

aristotelian
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Re: Anyone use “baskets”at fidelity?

Post by aristotelian » Tue Nov 05, 2019 10:43 am

No fractional shares would be a dealbreaker for me.

Cash
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Re: Anyone use “baskets”at fidelity?

Post by Cash » Tue Nov 05, 2019 11:59 am

perplexed wrote:
Tue Nov 05, 2019 10:41 am
Cash wrote:
Tue Nov 05, 2019 10:29 am
OK I created and purchased a basket. Things I’ve learned:

1. Automatic allocation is nice, but appears to work only when creating the basket. You can input specific dollar amounts for future purchases, but you have to do so for each position.


-- Are you saying we can't add directly to the basket? I have not tried this myself.

2. As I noted above, no fractional shares.

3. Basket trading is not supported on the app.

#3 is a dealbreaker for me, so I will probably not use this feature going forward. But I would use it if they add it to the app just to save me the few seconds to calculate the number of shares to purchase for a given position.

Thank you so much..
Yes, you can add directly to the basket, but for instance, you can’t just enter $1000 and have it automatically split across the securities. Instead, you have to enter the amount for each security in the basket (e.g., $500 to VTI, $500 to VXUS).

rkhusky
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Re: Anyone use “baskets”at fidelity?

Post by rkhusky » Tue Nov 05, 2019 2:12 pm

That makes the basket much less useful, along with the lack of one-click rebalancing.

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LiveSimple
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Re: Anyone use “baskets”at fidelity?

Post by LiveSimple » Thu Nov 07, 2019 1:02 pm

Interesting, just for the heck of it used a few basket purchases using Index ETFs.

No need if you are tied to mutual funds....

Nice feature if you want to spread your investments and purchase.

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