Re: Question about "The Index"
Originally Posted by smooch
In my 403b I have Fidelity Equity Income (FEQIX). On the Fidelity site, it is comparing that fund to the Russell 3000 Value. Others that I have are compared to the Russell 2000 Value, the Russell 1000 Value and the Russell MidCap Value. How would they decide which index to compare to? My results for FEQIX are miserable compared to the index.
Period FEQIX Russell 3000 Value
1 Year* 8.00%* * * * 15.44%
3 Year 5.42% 8.68%
5 Year* 3.63%* * * * * 6.05%
It's been about five years since we owned FEQIX, but doesn't that include a huge slug of bonds? *Is it possible that Fidelity is only comparing their stocks to the Russell 3000 value?
But you're right. *If you're not still adding DCA dollars, then an equivalent ETF could be a much cheaper way to replicate index performance.
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