Author Topic: Fidelity Index Funds  (Read 2413 times)

FamilyGuy

  • Bristles
  • ***
  • Posts: 326
  • Location: NC
Fidelity Index Funds
« on: March 01, 2018, 09:43:30 AM »
Hi All - My company's 401K is with Fidelity. I'm looking for something similar to Vanguard Total Market Index funds. What would be your recommendation for Fidelity...It doesn't have FSTVX...

Options available are
FID Freedom series
SpartanSM 500 Index Pool Class D
Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX)
Vanguard Small-Cap Index Fund Admiral Shares (VSMAX)
and much more that I couldn't understand.

Brother Esau

  • Bristles
  • ***
  • Posts: 477
Re: Fidelity Index Funds
« Reply #1 on: March 01, 2018, 09:50:52 AM »
FSTMX - Fidelity Total Market index Fund may be similar.

FamilyGuy

  • Bristles
  • ***
  • Posts: 326
  • Location: NC
Re: Fidelity Index Funds
« Reply #2 on: March 01, 2018, 10:10:40 AM »
Attached all the funds available with Fidelity open for me to contribute.

FamilyGuy

  • Bristles
  • ***
  • Posts: 326
  • Location: NC
Re: Fidelity Index Funds
« Reply #3 on: March 01, 2018, 10:11:33 AM »
FSTMX - Fidelity Total Market index Fund may be similar.
This one is not available for me :(
Below are my screenshots to the funds that are available.

markpst

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Fidelity Index Funds
« Reply #4 on: March 01, 2018, 10:21:00 AM »
I think you need to consider the fees as well. Can you snapshot those? In my work's Fidelity plan there is only one truly low cost option. Are you able to open a Fidelity BrokerageLink account through your plan? If so, you would have access to all of Fidelity's low cost funds. I just opened one a couple of weeks ago, but haven't funded it yet.

nereo

  • Senior Mustachian
  • ********
  • Posts: 10814
  • Location: Just south of Canada
    • Here's how you can support science today:
Re: Fidelity Index Funds
« Reply #5 on: March 01, 2018, 10:22:43 AM »
what are the fees associated with these funds?

You are right, there is no exact equivalent to a total market fund.
The closest you are going to get is to invest in a combination of one of the large-cap and medium-cap funds (if their fees are reasonable).
You could also add a small-cap fund, but be aware that the total market funds (e.g. FSTMX) are market-cap weighted, so most of it (~80%) is large cap -- the smallest 1,500 stocks in a total market index (out of about 3,800) make up ~~2% of the total value of the fund.

Tyler

  • Handlebar Stache
  • *****
  • Posts: 1158
Re: Fidelity Index Funds
« Reply #6 on: March 01, 2018, 10:29:17 AM »
SpartanSM 500 Index Pool Class D

From your listed options, this one is most similar to a total US market fund.  As Nereo points out, about 80% of a total US market fund return is driven by the S&P500.  If it makes sense with the fees, you could also choose to split your money between a few funds to reasonably approximate a total market fund.  But it's certainly not required. 
« Last Edit: March 01, 2018, 10:41:49 AM by Tyler »

FamilyGuy

  • Bristles
  • ***
  • Posts: 326
  • Location: NC
Re: Fidelity Index Funds
« Reply #7 on: March 01, 2018, 10:31:16 AM »
I think you need to consider the fees as well. Can you snapshot those? In my work's Fidelity plan there is only one truly low cost option. Are you able to open a Fidelity BrokerageLink account through your plan? If so, you would have access to all of Fidelity's low cost funds. I just opened one a couple of weeks ago, but haven't funded it yet.

Hi, yes I do see BROKERAGE LINK in my option. Do you recommend that?

FamilyGuy

  • Bristles
  • ***
  • Posts: 326
  • Location: NC
Re: Fidelity Index Funds
« Reply #8 on: March 01, 2018, 10:37:25 AM »
what are the fees associated with these funds?

You are right, there is no exact equivalent to a total market fund.
The closest you are going to get is to invest in a combination of one of the large-cap and medium-cap funds (if their fees are reasonable).
You could also add a small-cap fund, but be aware that the total market funds (e.g. FSTMX) are market-cap weighted, so most of it (~80%) is large cap -- the smallest 1,500 stocks in a total market index (out of about 3,800) make up ~~2% of the total value of the fund.

Vanguard Mid-Cap Index Fund Admiral Shares

Expenses & Fees 
Exp Ratio (Gross) 0.06%
4/27/2017 ($0.60 per $1000)

Exp Ratio (Net) 0.06%
4/27/2017 ($0.60 per $1000)

Management Fee 0.05%


Vanguard Small-Cap Index Fund Admiral Shares

Expenses & Fees 
Exp Ratio (Gross) 0.06%
4/27/2017 ($0.60 per $1000)

Exp Ratio (Net) 0.06% 4/27/2017
($0.60 per $1000)

Management Fee 0.05%

Telecaster

  • Handlebar Stache
  • *****
  • Posts: 1909
  • Location: Seattle, WA
Re: Fidelity Index Funds
« Reply #9 on: March 01, 2018, 10:47:06 AM »
Those look perfectly fine.  As Tyler mentioned, the total market index and S&P index track very closely, so they are almost the same thing because they are both dominated by same large caps.  For that reason, I stir in about 20% small cap into my own portfolio.  So IMO, the small cap index would work perfectly well, if you want to expand beyond just the S&P500. 

markpst

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Fidelity Index Funds
« Reply #10 on: March 01, 2018, 05:05:16 PM »
I think you need to consider the fees as well. Can you snapshot those? In my work's Fidelity plan there is only one truly low cost option. Are you able to open a Fidelity BrokerageLink account through your plan? If so, you would have access to all of Fidelity's low cost funds. I just opened one a couple of weeks ago, but haven't funded it yet.

Hi, yes I do see BROKERAGE LINK in my option. Do you recommend that?
I would skip the Brokerage Link for now. I haven't used mine, so I don't feel qualified to recommend it to you. I saw in your reply that you have some solid low cost options available to you. I would use the SpartanSM 500, and also the Fidelity Small & Midcaps.

MDM

  • Walrus Stache
  • *******
  • Posts: 9619
Re: Fidelity Index Funds
« Reply #11 on: March 01, 2018, 07:21:10 PM »
If you want to approximate the total stock market with separate funds, see that link for ideas.

NoStacheOhio

  • Handlebar Stache
  • *****
  • Posts: 2143
  • Location: Cleveland
Re: Fidelity Index Funds
« Reply #12 on: March 02, 2018, 08:23:48 AM »
I think you need to consider the fees as well. Can you snapshot those? In my work's Fidelity plan there is only one truly low cost option. Are you able to open a Fidelity BrokerageLink account through your plan? If so, you would have access to all of Fidelity's low cost funds. I just opened one a couple of weeks ago, but haven't funded it yet.

Hi, yes I do see BROKERAGE LINK in my option. Do you recommend that?

That would be an easy way to just buy whatever you want. I've done it, it's fine. There's a Spartan Total Market Fund that would be an excellent choice with no transaction fees.

However, you'll get mostly the same results from just buying the Spartan 500 fund and not worrying about it. You won't be at your job forever.

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 4986
  • Age: 34
  • Location: Seattle, WA
    • My blog
Re: Fidelity Index Funds
« Reply #13 on: March 02, 2018, 10:30:12 AM »
Yeah, I'd start with just putting the whole stock allocation in the S&P 500 fund. The S&P 500 performs similarly enough to the total market index that I don't think it's worth the added complexity to buy a little bit of the small-cap/mid-cap funds just to approximate the total market a little bit better. The Vanguard Total Bond Market fund is also a good choice if your investment policy statement tells you to invest in bonds.

Wintergreen78

  • Stubble
  • **
  • Posts: 127
Re: Fidelity Index Funds
« Reply #14 on: March 02, 2018, 12:42:06 PM »
I use fidelity and use their s&p500 index plus their extended market index to approximate the entire market. A few years ago I spent too much time reading and thinking about allocations and decided I should have small/mid cap exposure. It really hasnít made much difference.

I would agree with the people who recommend just going with the s&p500 to keep things simple.

FamilyGuy

  • Bristles
  • ***
  • Posts: 326
  • Location: NC
Re: Fidelity Index Funds
« Reply #15 on: March 05, 2018, 03:44:44 PM »
Thanks everyone. I shifted all my 401k savings to SpartanSM 500 Index Pool Class D.

chasesfish

  • Magnum Stache
  • ******
  • Posts: 3210
  • Age: 37
  • Location: Texas
Re: Fidelity Index Funds
« Reply #16 on: March 05, 2018, 06:33:54 PM »
Congrats!

If you want this to track slightly closer to the total market index, put 20% in the mid-cap index and 10% in the small cap index.  It's really splitting hairs and thank your employer for having an awesome 401k