Author Topic: Recommendations on Fidelity Bond Funds in the current environment  (Read 1594 times)

retireatbirth

  • Bristles
  • ***
  • Posts: 260
I'm shifting my asset allocation from 100% equities to about 90/10 and I'm researching bond funds at Fidelity. My elementary understanding of bonds tells me that short term funds are a better choice in the low rate environment as these bonds will mature quicker and higher yield bonds will enter the fund after a short term dip in price if rates rise. I have no clue about bonds though.

Also, I should point out that it was in my plan all along to shift to some bonds as my portfolio matured, not because equity prices have risen.

https://www.fidelity.com/mutual-funds/fidelity-funds/why-index-funds

Fidelity Inflation-Protected Bond Index Fund   View Fund   View Fund
Fidelity Intermediate Treasury Index Fund   View Fund   View Fund
Fidelity Long-Term Treasury Index Fund   View Fund   View Fund
Fidelity Short-Term Treasury Index Fund   View Fund   View Fund
Fidelity U.S. Bond Index Fund   View Fund   View Fund
Fidelity Short-Term Bond Index Fund NEW   View Fund   View Fund

starguru

  • Pencil Stache
  • ****
  • Posts: 744
Re: Recommendations on Fidelity Bond Funds in the current environment
« Reply #1 on: January 29, 2018, 08:42:39 AM »
What are you trying to achieve?   I use FSITX in my tax deferred accounts and FTABX in my taxable accounts.  The former is just a total bond market fund and the latter is for municipal bonds.


Sent from my iPhone using Tapatalk

CoffeeR

  • Stubble
  • **
  • Posts: 215
  • Location: Southwest
Re: Recommendations on Fidelity Bond Funds in the current environment
« Reply #2 on: January 29, 2018, 08:51:57 AM »
Even though I know this will bring out the ideologues in force, I prefer the actively managed FTBFX (Fidelity Total Bond) for my bond holdings. My retirement US stock holdings are 100% in the total stock market index. Note that I do no use FTBFX, but rather a lower cost share-class version of it.

Of the funds you mentioned FBIDX (US Bond Index Fund) is the broadest most diversified. That is the one I would use.

retireatbirth

  • Bristles
  • ***
  • Posts: 260
Re: Recommendations on Fidelity Bond Funds in the current environment
« Reply #3 on: January 29, 2018, 04:45:12 PM »
What are you trying to achieve?   I use FSITX in my tax deferred accounts and FTABX in my taxable accounts.  The former is just a total bond market fund and the latter is for municipal bonds.


Sent from my iPhone using Tapatalk

Two goals. In my taxable, I want a muni fund as an extended emergency fund. I bought FHIGX for that, but now I'm thinking of switching to a muni fund with shorter duration. FHIGX average duration is 7 years.

In my IRA, I want a bond fund to reduce my portfolio volatility and position myself to buy a dip in equities. I'm becoming convinced this should be a shorter duration bond fund as well based on what I've read. I wasn't sure if the MMM community looked differently at the argument around buying short duration in a rising rate environment.

So, my current thinking is FSTFX for munis short and FNSKX for bonds short.
« Last Edit: January 29, 2018, 04:53:15 PM by retireatbirth »