Fidelity Index Funds

[jkern]

I'm reviewing a friend's portfolio for them and all of their retirement accounts are in Fidelity. I would like to recommend some index funds but I'm not familiar with Fidelity's funds.

Does Fidelity have a very low expense Total Stock Index fund, Foreign Stock Index fund and Total Bond Index fund?

 

[Helen]

Fidelity actually has some index funds that have an expense ratio of zero. These a good for retirement accounts. The only catch is you have to keep them with Fidelity, if you move to Vanguard or any other brokerage house you have to sell the funds. That's why they aren't good in a taxable account.

Here is a list of their index funds: https://www.fidelity.com/mutual-funds/investing-ideas/index-funds

 

[audreyh1]

Yes, Fidelity has the standard index funds and they are super low cost.

The bond index fund is the Fidelity US Bond Index fund and does not have “Total” in the name but is the equivalent of the Vanguard Total Bond Index fund.

 

[LOL!]

Yes, Fidelity has the standard index funds and they are super low cost.

The bond index fund is the Fidelity US Bond Index fund and does not have “Total” in the name but is the equivalent of the Vanguard Total Bond Index fund.

And conversely the Fidelity Total Bond fund (FTBFX) is NOT an index fund.

 

[target2019]

Fidelity funds equivalent to Vanguard listed here:
https://www.bogleheads.org/wiki/Fidelity

 

[jazz4cash]

Are these workplace retirement accounts? If so, your friend may not have access to the full array of Fidelity funds.

 

[Brat]

After poking around on Fidelity I found Current Market Weightings and Recommendations (equities). I created a spreadsheet with my investments and am tweaking it for a closer fit. Top sectors are IT, Health Care, Communication Services, Financials (which I am not hot on), and Consumer Discretionary. Interesting.

 

[georgemoe]

Are these workplace retirement accounts? If so, your friend may not have access to the full array of Fidelity funds.

If so, I was able to create a Fidelity Brokerage Link account within my Employer 401K. Allowed me access to the index funds in question. Could be the case with OP's contact.

 

[Third Son]

FSKAX equity index fund
FXNAX- total bond fund

I have a two fund portfolio using these and am in retirement.

 

[jazz4cash]

If so, I was able to create a Fidelity Brokerage Link account within my Employer 401K. Allowed me access to the index funds in question. Could be the case with OP's contact.

I am not clear on what you are saying. I cannot imagine that you can use funds that are not included in the specific 401k (or other) workplace plan. When you say access to the index funds, does that mean you can view them for research purposes?

I have a few accounts at Fido but the 401k's are restricted to whatever the employer and Fido have agreed to include. Sometimes they are non Fido funds.

 

[Jerry1]

I am not clear on what you are saying. I cannot imagine that you can use funds that are not included in the specific 401k (or other) workplace plan. When you say access to the index funds, does that mean you can view them for research purposes?

I have a few accounts at Fido but the 401k's are restricted to whatever the employer and Fido have agreed to include. Sometimes they are non Fido funds.

If your plan allows a brokerage account, you can access products outside of the prescribed funds of a 401K plan. My employer had that option, but I did not participate in it because the funds they offered were sufficient.

 

[jazz4cash]

If your plan allows a brokerage account, you can access products outside of the prescribed funds of a 401K plan. My employer had that option, but I did not participate in it because the funds they offered were sufficient.

How common is it that a 401k plan allows a brokerage account? I think it is uncommon. I don’t think we even know if it is a workplace account so maybe it’s all moot, but you can set up a Fido IRA and transfer funds if the plan permits.

 

[audreyh1]

FSKAX equity index fund
FXNAX- total bond fund

I have a two fund portfolio using these and am in retirement.

FSKAX - Fidelity Total Market Index fund
FXNAX - Fidelity US Bond Index fund.

 

[Jerry1]

How common is it that a 401k plan allows a brokerage account? I think it is uncommon. I don’t think we even know if it is a workplace account so maybe it’s all moot, but you can set up a Fido IRA and transfer funds if the plan permits.

Sorry, I don't know how common it is. They instituted it in the last 5 or so years of my employment. It was not an option before that. I think a lot of people were complaining about the lack of options. They always had an S&P fund, so I didn't look into the brokerage account offering.

 

[mrfeh]

FSKAX - Fidelity Total Market Index fund
FXNAX - Fidelity US Bond Index fund.

These are my 2 primary holdings.

In the OP's case, I'd go with the 0 ER funds. Just refer to the bogleheads page mentioned previously.

 

[georgemoe]

It was something my employer had added recently and I needed to access the Zero Index funds within my 401K plan. It was a nice inclusion and gave me more options.

 

[jkern]

Are these workplace retirement accounts? If so, your friend may not have access to the full array of Fidelity funds.

These are rollover IRA's. Thanks to everyone for the index fund lists.

 

[RobLJ]

In some cases (like my employer's 403b), you can opt for a Fidelity Brokerage Wrapper account that opens up access to all their mutual funds and 3rd party funds, rather than the 40-50 available in the "regular" Fidelity 403b employer options.
I don't know how widely this option is available, but I moved into it in 2012. The only downside is that ETFs are not available (due to employer account restrictions). I'm likely to roll this over into a roll-over brokerage IRA, largely due to my worries about state budget and potential impact on retirement funding since technically my 403b is considered part of the State's retirement system, but I'm still researching since the 403b accounts are protected from lawsuit.

I am not clear on what you are saying. I cannot imagine that you can use funds that are not included in the specific 401k (or other) workplace plan. When you say access to the index funds, does that mean you can view them for research purposes?

I have a few accounts at Fido but the 401k's are restricted to whatever the employer and Fido have agreed to include. Sometimes they are non Fido funds.

 

[teetee]

The only catch is you have to keep them with Fidelity, if you move to Vanguard or any other brokerage house you have to sell the funds. That's why they aren't good in a taxable account.

You described it like this is a Fidelity or index fund shortcoming but any brokers or fund will have the same requirement if you want to move the funds out.

> That's why they aren't good in a taxable account.

Huh? Based on your reasoning no fund is good for a taxable account.

 

[Third Son]

Yeah what she said

FSKAX - Fidelity Total Market Index fund
FXNAX - Fidelity US Bond Index fund.

Lol! Yeah I answered without looking up the formal names of the funds. I think I needed a nap at the time. Being retired is hard ;-)