Funds Converted from FSTMX/FSIIX to FSTVX/FSIVX

[sulaco]

I just got (several) letters in the mail indicating that all of my holds in FSTMX/FSIIX/FBIDX were going to be converted FSTVX/FSIVX/FSITX. FSTVX/FSIVX/FSITX have the same holdings, but lower expenses. Sweet!

It looks like they've lowered the minimums for all of these funds. FSTMX/FSIIX/FBIDX used to have $10,000 minimums, but have been dropped to $2,500. And IIRC, FSTVX/FSIVX/FSITX had $25,000 minimums and have been dropped to $10,000.

[hoppy08520]

I doubt more than 1% of readers have all these tickers memorized. Are you saying you went to a cheaper share class? If so, congrats on your rising balances and lower expense ratios.

[Another Reader]

With the expense ratio pressure from Vanguard and the ETF's, it has become a very competitive index world.

[sulaco]

Sorry, here's the breakdown:

  FSTMX/FSTVX - Total Market Index
  FSIIX/FSIVX - International Index
  FBIDX/FSITX -  U.S. Bond Index

Are you saying you went to a cheaper share class? If so, congrats on your rising balances and lower expense ratios.

That's right, identical assets, but lower expenses and higher earnings.

[grantmeaname]

I doubt more than 1% of readers have all these tickers memorized. Are you saying you went to a cheaper share class? If so, congrats on your rising balances and lower expense ratios.

Yeah, it's just the same thing as going from investor to admiral shares at Vanguard.

[Zaga]

I got that change in my Fidelity accounts last week too, sweet!  Thanks for the head's up about the lower minimums, I didn't catch that part.

[wakkowarner]

I got this message too and wondered what had happened.  I had recently switched from FCNTX to FSTMX due to meeting the 10k min limit.  I remember when seeing the expense ratio for FSTVX I was a bit envious and couldn't wait to reach the 25k mark.  Then I get the notice and was like, WOOT!

Still don't know what happened, probably the competition.

[sheepstache]

I love the lower minimums but can't help but think of the quip from the guy who sold out right before the 1929 crash and when asked how he knew to do that said it was because he knew the market was flying too high when the shoeshine boy was giving him stock tips.  The populizing of basically using mutual funds as a savings account worries me is what I'm trying to say.