HSA Investment Choice

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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
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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.


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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
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