HSA Investment Choice

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
tvent
Posts: 17
Joined: Fri May 20, 2011 6:37 am

HSA Investment Choice

Post by tvent » Fri Nov 15, 2019 6:52 am

I am a long term buy and hold index fund investor. I've been using my HSA like a retirement account and not using it for medical expenses until I need it in the future. The account was with HSA Bank with TD Ameritrade and held in Vanguard Total Stock Market ETF. I was never really happy with HSA Bank as the custodian so I finally moved the HSA account to Fidelity.

Now that the account is held directly with Fidelity, is it cheaper for me (in terms of expenses), to hold a Fidelity Index Fund at Fidelity rather than a Vanguard Fund at Fidelity (assuming I am comparing funds with similar expense rations)? I am considering selling the Vanguard shares and purchasing Fidelity shares. I contribute a lump sum to the HSA account yearly and plan to purchase more index fund shares in the future.

Silk McCue
Posts: 3402
Joined: Thu Feb 25, 2016 7:11 pm

Re: HSA Investment Choice

Post by Silk McCue » Fri Nov 15, 2019 7:46 am

Assuming all things equal on the two funds in regards to holdings it is a no brainer to hold the Fidelity fund in the HSA at Fidelity. I do however expect that if it is a broad based index fund then the ER difference won't make a hill of beans difference over time.

Cheers

User avatar
1789
Posts: 284
Joined: Fri Aug 16, 2019 3:31 pm
Location: OR

Re: HSA Investment Choice

Post by 1789 » Fri Nov 15, 2019 10:18 am

Sure that would be the default and right choice if you are buying index funds not ETFs as Fidelity made ETF trading free of charge
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

Post Reply