Author Topic: Which Fidelity real estate fund?  (Read 3102 times)

MaxRules

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Which Fidelity real estate fund?
« on: March 04, 2015, 12:44:03 PM »
I'm looking to get into one of these real estate funds and wanted to see if anyone had suggestions or input. I am already invested in a Fidelity index fund and Healthcare fund, and wanted to diversify a little with real estate. I found a real estate index fund, FSRVX, that has a low expense ratio (0.09%), and good returns. However this fund is only about 4 years old. The other fund is FRESX. This fund is very similar, in fact I see almost no variation but the expense ratio is much higher at 0.80%. This is a much older fund and has a long track record of good returns. It has a lower minimum required investment but I plan to start with $10k in either one. Am I over looking anything or are there better options out there?

skyrefuge

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Re: Which Fidelity real estate fund?
« Reply #1 on: March 04, 2015, 01:39:56 PM »
FSRVX is a passively-managed index fund.
FRESX is an actively-managed fund.

Their differences are explained in the "Objective" and "Strategy" sections on their front pages on Fidelity's website. Have you been making investing decisions in the past without looking at these things? Being aware of expenses is always good, and being aware of past-performance is both good and bad, but reading about a fund's objective/strategy a pretty critical part of investing.

RapmasterD

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Re: Which Fidelity real estate fund?
« Reply #2 on: March 04, 2015, 02:51:44 PM »
The consensus is to not time the market, but IMHO that is "the market." Given that here we're talking about a sector, I personally am timing. To me, REITs have been particularly frothy. I have no issue staying out until I look at a price chart and see REITs getting slammed in our next downturn disproportionately to the S&P 500.

So to respond to your question, my response would be "none."

MaxRules

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Re: Which Fidelity real estate fund?
« Reply #3 on: March 04, 2015, 08:38:02 PM »
FSRVX is a passively-managed index fund.
FRESX is an actively-managed fund.

Their differences are explained in the "Objective" and "Strategy" sections on their front pages on Fidelity's website. Have you been making investing decisions in the past without looking at these things? Being aware of expenses is always good, and being aware of past-performance is both good and bad, but reading about a fund's objective/strategy a pretty critical part of investing.


I did notice the difference between their Objectives but I guess that didn't mean that much to me because the returns of each fund is nearly identical. Even the companies and REITs each fund invests in is very near the same.


The consensus is to not time the market, but IMHO that is "the market." Given that here we're talking about a sector, I personally am timing. To me, REITs have been particularly frothy. I have no issue staying out until I look at a price chart and see REITs getting slammed in our next downturn disproportionately to the S&P 500.

So to respond to your question, my response would be "none."

'None' is option 3 and that is a good point. I considered that but I try to stay away from always thinking the bottom is about to fall out. I remember two or three years ago when I was investing in Healthcare. It was "very high" and surely it will drop soon. Nope, it has seen unbelievable gains ever since. I'd like to diversify outside of Healthcare and a real estate fund is what I have been researching since the money is coming from a house sale.