Why do you favor using Fidelity mutual funds over Vanguard ETFs? All things being equal I would favor the latter.
I use Spartan funds for my 403B through Fidelity, and have generally been unimpressed by both their cost and tracking error relative to Vanguard. (Disclaimer: completely unscientific claim, just gestalt.)
Agreed, I prefer Vanguard as well. However, it's based solely on principle, and trust. When I look at the data since inception, they look pretty even to me, with Vanguard edging ahead by having slightly lower fees:
I've been going back and forth on this myself. Since Saturna charges an additional $10 transaction cost on Vanguard funds, it comes out to an additional $10 a year. So the options are:
1. Vanguard funds (preferred) - $25 yearly cost, auto dividend reinvesting.
2. Vanguard ETFs - $15 yearly cost, but dividends must be held in cash until Jan when I make my new contribution.
3. Vanguard ETFs - $19 yearly cost if I let them reinvest dividends automatically.
4. Fidelity Spartan fund - $15 yearly cost, auto dividend reinvesting.
With #2, I'm not sure what the opportunity cost is of keeping dividends in cash for that long, but I'm guessing it will grow to over $10 a year as the account grows. With #3, I'm not sure what the hidden cost is of reinvesting dividends with a market order at market open (which is how they'd do it). With #4, I'm not sure how this will affect me. Currently both Vanguard and Fidelity's total US stock index fund have the same .05 ER, so I'd expect the difference to be very minimal. I can't tell for sure if it will be in my favor or not.
Every option has it's ambiguity, but the one thing that's certain is Saturna's additional $10 cost for Vanguard Funds. So I'm leaning towards option #4.