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Fidelity Spartan Total Market Index Funds?
Old 02-02-2012, 11:06 AM   #1
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Fidelity Spartan Total Market Index Funds?

I am thinking of simplifying my investments and holding the majority of my investments in this fund. It is a very broad index fund which seems to have diversity and flows with the economy in general. Let me know any pros or cons you might feel or if you have any of these funds. Thanks
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Old 02-02-2012, 11:23 AM   #2
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Using a TSM fund for a majority of your domestic equity holdings is a fairly common strategy. True indexing. Low cost. Simple. Tax efficient. If I recall correctly, the Fidelity Spartan TSM fund has a competitive expense ratio vs their competitors, so sounds good to me.

Cons? Some folks prefer to use separate small, mid and large cap indexes so they can control their AA percentages to each according to their current outlook.
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Old 02-02-2012, 11:31 AM   #3
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Originally Posted by BillNOVA View Post
I am thinking of simplifying my investments and holding the majority of my investments in this fund. It is a very broad index fund which seems to have diversity and flows with the economy in general. Let me know any pros or cons you might feel or if you have any of these funds. Thanks
What's your asset allocation? They're cheap funds, and they're probably almost as good as Vanguard (for a slightly higher price) but they won't cover every detail of some plans.

My daughter has her Roth IRA half in Spartan's extended market index and half in the international index. (Her taxable assets are pretty much in CDs, but she's in college now and will have a lot of startup expenses in 2014.) She's had no complaints.
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Old 02-02-2012, 11:42 AM   #4
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I'd add some of the Spartan Global ex-US fund as well. Maybe a bond fund if you like those.
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Old 02-02-2012, 07:59 PM   #5
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What's your asset allocation? They're cheap funds, and they're probably almost as good as Vanguard (for a slightly higher price) but they won't cover every detail of some plans.
Actually, I believe this is perhaps the only fund that's less expensive than Vanguard. 10 bp vs. 17 bp. Not sure about the other Spartan funds. Anyway, this is a great way to own the total domestic equities market. I agree with the others that suggest adding international equities to the equity mix as well.
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Old 02-02-2012, 08:18 PM   #6
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Both Vanguard and Fidelity have different share classes of their index funds. So the Vanguard fund has an expense ratio of 0.06% for Signal and Admiral shares classes. Signal shares at some brokers can be bought for an initial minimum of less than $100.
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Old 02-02-2012, 08:43 PM   #7
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Both Vanguard and Fidelity have different share classes of their index funds. So the Vanguard fund has an expense ratio of 0.06% for Signal and Admiral shares classes. Signal shares at some brokers can be bought for an initial minimum of less than $100.
You are absolutely correct about that. Forgot how cheap those other share classes were. Thanks.
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