Author Topic: FSGDX vs FSIVX  (Read 293 times)

FLBiker

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FSGDX vs FSIVX
« on: October 11, 2018, 08:13:04 AM »
I've got ~$50K in FSGDX (Fidelity Global X-US Index) which has an expense ratio of .06.  I was just poking around the Fidelity site today, looking to see if any of the zero fee funds were available in my 403b (they aren't) and I saw FSIVX (Fidelity International Index) which has an expense ratio of .045.

The holdings are similar, but not the same.  Here are the strategies:

FSGDX:
Normally investing at least 80% of assets in securities included in the MSCI ACWI (All Country World Index) ex USA Index and in depository receipts representing securities included in the index. Using statistical sampling techniques based on such factors as capitalization, industry exposures, dividend yield, price/earnings ratio, price/book ratio, earnings growth, country weightings, and the effect of foreign taxes to attempt to replicate the returns of the MSCI ACWI ex USA Index. Lending securities to earn income for the fund.

FSIVX:
Normally investing at least 80% of assets in common stocks included in the Morgan Stanley Capital International Europe, Australasia, Far East Index, which represents the performance of foreign stock markets.

Is there any compelling reason why I shouldn't switch everything to FSIVX?

Thanks!

Radagast

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Re: FSGDX vs FSIVX
« Reply #1 on: October 11, 2018, 09:39:37 AM »
Looks from the descriptions like FSGDX includes emerging markets, while FSIVX does NOT include emerging markets. Personally I'd pay .015 for better market coverage, but read up to be sure.

terran

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Re: FSGDX vs FSIVX
« Reply #2 on: October 11, 2018, 10:42:34 AM »
Based on my research...

FSGDX follows the MSCI ACWI ex USA Index which has 2,152 companies and covers approximately 85% of the global equity opportunity set outside the US. See https://www.msci.com/documents/10199/86494e1f-914e-4aa5-82a9-2e29ed5adbbf

FSIVX follows the MSCI EAFE Index which has 925 companies and covers large and mid cap representation across 21 Developed Markets countries excluding the US and Canada. See https://www.msci.com/documents/10199/822e3d18-16fb-4d23-9295-11bc9e07b8ba

I would stick with FSGDX for the broader coverage. Ideally, FTIPX would be even better as it's an even larger global market index.

FLBiker

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Re: FSGDX vs FSIVX
« Reply #3 on: October 11, 2018, 12:32:04 PM »
Excellent, thank you very much for the well-reasoned responses.  I'll see if FTIPX is available.