Best Index Funds (ETFs and mutual funds) through Fidelity

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Umarhussain
Posts: 1
Joined: Sun Dec 01, 2019 12:01 pm

Best Index Funds (ETFs and mutual funds) through Fidelity

Post by Umarhussain » Sun Dec 01, 2019 12:29 pm

Hi there, I am relatively new to this world of investing so please excuse my ignorance.

I manage my IRA accounts through Fidelity. So which funds are the most ideal for someone like me is looking to invest my assets into funds that are diverse and have the lowest expense ratio (and of course the best returns)? So far I have discovered The VOO ETF and the mutual funds FXAIX and FNLIX. Any others out there for me to look into? Thanks I appreciate it!

UAH

mhalley
Posts: 7646
Joined: Tue Nov 20, 2007 6:02 am

Re: Best Index Funds (ETFs and mutual funds) through Fidelity

Post by mhalley » Sun Dec 01, 2019 1:32 pm

The wiki has a Fidelity section
https://www.bogleheads.org/wiki/Fidelity

nix4me
Posts: 326
Joined: Sat Oct 13, 2018 9:32 am

Re: Best Index Funds (ETFs and mutual funds) through Fidelity

Post by nix4me » Sun Dec 01, 2019 1:39 pm

FZROX - Fidelity mutual fund
ITOT - iSHARES total market ETF
Or you can buy Vanguard ETFs such as VOO or VTI

fwellimort
Posts: 115
Joined: Tue Feb 12, 2019 9:41 am

Re: Best Index Funds (ETFs and mutual funds) through Fidelity

Post by fwellimort » Sun Dec 01, 2019 1:48 pm

There's Target Date Index Funds for one size fit all as long as you agree with its glide path.

Find a date when you hit age 65. Say you will become 65 in age 2042. Find 2045 (FIOFX) Fidelity Freedom® Index 2045 Fund - Investor Class.
And just invest in that.

It's currently 58.42% US, 31.80% International, rest bond/cash.

As for "best returns", we have no idea. That's the entire point of the stock market. We all hope the market will go up in our lifetime but nothing is a guarantee (much less finding the "best returns).

You can build your own 3-4 fund portfolio with FZROX/FZILX/FXNAX/and others but there's no guarantee of it outperforming a target date index fund (note: I said target date "index" fund, not target date fund). Theoretically, you can replicate target date index funds for lower fees but from my experience, that extra pain of logging in to rebalance for such a minute gain isn't really worth it.

Most people here will prefer to build their own portfolios such as a 3 fund portfolio which consists of US, International, Bonds because it's more enjoyable and "hands on" than a simple target date index fund. As for which is the better choice, no one knows.

MotoTrojan
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Joined: Wed Feb 01, 2017 8:39 pm

Re: Best Index Funds (ETFs and mutual funds) through Fidelity

Post by MotoTrojan » Sun Dec 01, 2019 2:19 pm

You can trade almost any ETF for free at Fidelity. VTI or ITOT are good options with even more diversification than VOO since they include small/mid-caps.

If you prefer a mutual fund you’ll want to use a Fidelity offering.

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David Jay
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Location: Michigan

Re: Best Index Funds (ETFs and mutual funds) through Fidelity

Post by David Jay » Sun Dec 01, 2019 7:17 pm

fwellimort wrote:
Sun Dec 01, 2019 1:48 pm
There's Target Date Index Funds for one size fit all as long as you agree with its glide path.

Find a date when you hit age 65. Say you will become 65 in age 2042. Find 2045 (FIOFX) Fidelity Freedom® Index 2045 Fund - Investor Class.
And just invest in that.

It's currently 58.42% US, 31.80% International, rest bond/cash.
Note that Fidelity has two sets of Target Date funds. The low cost set (as above) are the Freedom Index 20xx funds.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Ferdinand2014
Posts: 835
Joined: Mon Dec 17, 2018 6:49 pm

Re: Best Index Funds (ETFs and mutual funds) through Fidelity

Post by Ferdinand2014 » Sun Dec 01, 2019 8:08 pm

Umarhussain wrote:
Sun Dec 01, 2019 12:29 pm
Hi there, I am relatively new to this world of investing so please excuse my ignorance.

I manage my IRA accounts through Fidelity. So which funds are the most ideal for someone like me is looking to invest my assets into funds that are diverse and have the lowest expense ratio (and of course the best returns)? So far I have discovered The VOO ETF and the mutual funds FXAIX and FNLIX. Any others out there for me to look into? Thanks I appreciate it!

UAH
I have 100% of my equities invested with FXAIX (Fidelity 500 index fund) with the Warren Buffett 2-fund portfolio. I have my fixed income portion invested with 1 month t-bills bought at auction on auto-roll at Fidelity which costs $0.

U.S. large cap as a core:
FXAIX(Fidelity 500 index) Er 0.015 SP 500 index
FNILX(Fidelity Large Cap Index Fund) Er 0.00 Fidelity index 500 stocks

U.S. total:
FSKAX (Fidelity total market index) Er 0.015 SP index 3500 stocks
FZROX (Fidelity zero total market index) Er 0.00 Fidelity index 2500 stocks

International:
FZILX (Fidelity zero international) Er 0.00. Fidelity index 2500 developed/emerging markets ex U.S.
FSPSX (Fidelity international index) Er 0.035 MSCI EAFE index 900 developed ex U.S. and Canada
FSGGX (Fidelity global ex U.S. index fund) Er 0.055 MSCI ACWI 2100 developed/emerging market ex U.S.
FTIHX (Fidelity Fidleity total international index fund) Er 0.06 MSCI ACWI IMI 4800 developed/emerging/small developed ex U.S.

Bonds:
FXNAX (Fidelity total bond index) Er 0.025 Bloomberg Barclays index 44% treasuries,23% corporate,25% MBS 5.6 year duration
FNBGX (Fidelity long term treasury) Er 0.03 100% treasuries 18 year duration
FUAMX Fidelity intermediate treasury) Er 0.03 100% treasuries 6 year duration
FUMBX (Fidelity short term treasuries) Er 0.03 100% treasuries 3 year duration


Money Market
FDLXX (Fidelity Treasury only money market fund) 100% t-bills and coupons


Classic 3 fund: FSKAX/FSGGX/FXNAX or FZROX/FZILX/FXNAX

Classic 2 fund FSKAX/FXNAX

Classic 2 fund Warren Buffett FXAIX/FUMBX or FDLXX or T-bills bought directly at auction

Or Target date fund - just make sure it says INDEX in the fund

Search menu for lowest Er, index, no minimum, Fidelity

https://fundresearch.fidelity.com/fund- ... 2Cexpenses
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

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