Well boys...salad says are here...Fidelity one ups Vanguard.

[ARCHIVED THREAD] - Well boys...salad says are here...Fidelity one ups Vanguard. (Page 1 of 5)

Posted: 8/1/2018 4:36:35 PM EDT

https://www.cnbc.com/2018/08/01/fidelity-one-ups-vanguard-first-company-to-offer-no-fee-index-fund.html

Fidelity one-ups Vanguard, Schwab and iShares, becoming first company to offer a no-fee index fund
Fidelity Investments is introducing two core equity index mutual funds covering the U.S. and international markets without any management fee.
The fee war in the index fund and ETF space has been intense with leaders Vanguard Group, Schwab and BlackRock iShares engaged in an endless battle to be the low-fee leader.
Experts have long expected that a major fund company would make the move soon to offer core index funds without any fee.

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Fidelity Investments just beat all of the low-fee index fund competition to a move long expected: It will be the first fund company to offer core index funds without any management fee.

On Wednesday, Fidelity announced the Fidelity Zero Total Market Index Fund and the Fidelity Zero International Index Fund will be available to investors on Friday. "Investors will pay a 0.00 percent fee, regardless of how much they invest in either fund, while gaining exposure to nearly the entire global stock market," Fidelity said in a release.

The major index fund companies and discount brokers have been engaged in what investing experts call an "endless" fee war, with Vanguard Group, Charles Schwab and BlackRock's iShares ETF families constantly setting new bars for the lowest management fees on core ETFs. Lately, some of the biggest Wall Street banks have been encroaching on their turf as well, with Goldman Sachs and J. P. Morgan introducing ETFs with competitive expense ratios.

This month, Vanguard is making a big move to relaunch its brokerage platform with trading of almost all ETFs in the industry for free.

Many index fund and ETF experts have argued that it would ultimately make sense for fund managers to offer the "building blocks" — the core market exposures — for free and charge fees for less generic investment products as individuals and advisors fill out their portfolios.

"Investors are increasingly fee-conscious and shifting toward passive products," said Todd Rosenbluth, the director of ETF and mutual fund research at CFRA. "While ETFs get much of the attention from a competitive perspective, demand for index mutual funds remains strong. Fidelity's move makes it easier and cheaper to invest in well-diversified mutual funds."

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Posted: 8/1/2018 4:38:09 PM EDT

[#1]

Time to move some money.

Posted: 8/1/2018 4:39:02 PM EDT

[#2]

Can I just an average Joe get in on this? What would be my minimum $ to start?

Patrick

Posted: 8/1/2018 4:39:21 PM EDT

[#3]

Well, it was pretty cheap to begin with, but this sounds like something I will move into after a bit more research.

Posted: 8/1/2018 4:39:30 PM EDT

[#4]

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Time to move some money.

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Yep, wife and I just agreed to open an account for our son.

Posted: 8/1/2018 4:41:10 PM EDT

[#5]

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Can I just an average Joe get in on this? What would be my minimum $ to start?

Patrick

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They say no minimums.

Posted: 8/1/2018 4:42:41 PM EDT

[#6]

Total noob here, would this just be free free stock trades? Is this worth opening an account?

Posted: 8/1/2018 4:42:57 PM EDT

[#7]

Italian French dressing is the best! Ranch =

Posted: 8/1/2018 4:44:01 PM EDT

[#8]

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Total noob here, would this just be free free stock trades? Is this worth opening an account?

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wat?

Posted: 8/1/2018 4:44:39 PM EDT

[#9]

Was only a matter of time.

Posted: 8/1/2018 4:46:05 PM EDT

[#10]

No fees?

What are they trying to get out of this? Simply stealing clients away from other firms?

Posted: 8/1/2018 4:47:12 PM EDT

[#11]

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Quoted:
No fees?

What are they trying to get out of this? Simply stealing clients away from other firms?

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The Folks who started up Fidelity had one goal. To be everything to every one no matter the costs.

So yes.

Posted: 8/1/2018 4:47:24 PM EDT

[#12]

tag for later

Posted: 8/1/2018 4:49:17 PM EDT

[#13]

My Roth IRA is with Fidelity. I'll have to check out this fund...

Posted: 8/1/2018 4:54:25 PM EDT

[#14]

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Quoted:
Total noob here, would this just be free free stock trades? Is this worth opening an account?

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No, not free stock trades. Yes, it may be worth having an account.

Stock trades in most cases have a fee on fidelity. This is a mutual fund (not a stock, a bundle of stocks) you can transfer money in to (for free), and it has no upkeep charge (free). So in theory all your money stays your money. It is like having a savings account that is made up of stocks. It sounds better than having an old fashioned savings account in every way except it could lose value.

I'll have to see if my 401k with them picks that up as an investment option.

EDIT: I do think the management fee gets a bit too much attention. I have one account with a management fee of .45% that earned 16%, and I have another account that has a .015% management fee that earned 12%. If I had $100 in each, I'd have 116 and 112 before the fee, and 115.5 and 111.98 after the fee if I'm doing my math right here. The large issue is that nobody can tell you whether the fund with the higher fee will actually have better results or not: statistically it won't perform any better, so the numerically sensible choice is to pick the one with the lowest fee. But statistics are one of the three kinds of lies. . .

Posted: 8/1/2018 4:59:31 PM EDT

[#15]

Ugh, I don't think I have either of those funds available to me in my 401k. Really hoping they add the S&P index to this.

Does anyone know how the employer negotiates the available funds? Does Fidelity just have a standard package or can the employer request specific stuff?

Posted: 8/1/2018 5:00:28 PM EDT

[#16]

Just for reference. VTSAX (vanguard total stock market) is 0.04% fee when you invest 10,000$ or more.

So for a $10,000 investment. That is $4 a year.
That’s worth it to me for the way vanguard operates and its reputation.

Posted: 8/1/2018 5:02:44 PM EDT

[#17]

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Just for reference. VTSAX (vanguard total stock market) is 0.04% fee when you invest 10,000$ or more.

So for a $10,000 investment. That is $4 a year.
That’s worth it to me for the way vanguard operates and its reputation.

View Quote

And what is wrong with Fidelity? I mean Ill save the $4 and get awesome service, access to the Blackrock ETFs, good website and the rewards credit card...

Posted: 8/1/2018 5:13:46 PM EDT

[#18]

I'll stay with Vanguard and let them to continue to bet me out of 4 basis points.

Good for Fidelity though. I am sure others will follow.

Posted: 8/1/2018 5:16:08 PM EDT

[#19]

I wonder what kind of tracking error it will have. I'm assuming competitive, but it's worth checking before jumping in with both feet.

Posted: 8/1/2018 5:17:06 PM EDT

[#20]

I use Fidelity so need to check into this. Thanks for posting this.

Posted: 8/1/2018 5:17:14 PM EDT

[#21]

My 401 is with them as well as some smaller investments. May be time for the wife to move some money.

Posted: 8/1/2018 5:19:36 PM EDT

[#22]

I'll stick with my old, water-stained mattress, thanks.

Posted: 8/1/2018 5:22:39 PM EDT

[#23]

How do you gauge the performance of a brand new fund? Just hope the fund manager does a good job?

Or did they "create" it by copying another pre-existing fund?

Posted: 8/1/2018 5:26:55 PM EDT

[#24]

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How do you gauge the performance of a brand new fund? Just hope the fund manager does a good job?

Or did they "create" it by copying another pre-existing fund?

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If it's an index tracker, it just comes down to the index and the efficiency of the tracking program. It's nothing that novel, except for the fact that they are not charging the fund assets for the trading and compute costs.

Posted: 8/1/2018 5:31:10 PM EDT

[#25]

Can someone show or tell me how to start putting just a little money in this as I can?

I don't know anything about this stuff... It is pretty sad.

Patrick

Posted: 8/1/2018 5:32:08 PM EDT

[#26]

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And what is wrong with Fidelity? I mean Ill save the $4 and get awesome service, access to the Blackrock ETFs, good website and the rewards credit card...

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Nothing. Vanguard homers gonna homer.

Any of the big boys: vanguard, fidelity, schwab, are going to be super low fee. The differences between them (even with 0% fidelity) is insignificant.

They all offer similar products. I liked schwabs website better, but fidelity wasn’t bad. Vanguard is having to completely relaunch its website because people were leaving in droves. CS and UI was shit.

When you are doing a 3 or 4 fund portfolio it doesn’t matter that they do/don’t offer a Shanghai b micro tech/fruitfly farm ETF.

Posted: 8/1/2018 5:32:30 PM EDT

[#27]

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Quoted:
Time to move some money.

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Shit, I wish I had some money to move. Palmetto State and SG Ammo got all mine...

Posted: 8/1/2018 5:33:58 PM EDT

[#28]

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I'll stick with my old, water-stained mattress, thanks.

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Water?

Posted: 8/1/2018 5:34:14 PM EDT

[#29]

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I'll stick with my old, water-stained mattress, thanks.

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"Water"-stained.

Posted: 8/1/2018 5:40:30 PM EDT

[#30]

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Quoted:
Can someone show or tell me how to start putting just a little money in this as I can?

I don't know anything about this stuff... It is pretty sad.

Patrick

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Usually they have a 10k minimum, but based on posts in this thread they don't for these funds.

Open an account. Choose the type of vehicle (roth/traditional). Select a fund, move money from savings/checking. Also, I highly recommend setting up a weekly or monthly contribution. It's easy to find something else to spend the money on, so keeping it on autopilot makes sure it ends up getting saved.

Posted: 8/1/2018 5:41:15 PM EDT

[#31]

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I'll stay with Vanguard and let them to continue to bet me out of 4 basis points.

Good for Fidelity though. I am sure others will follow.

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What does this mean? I looked up basis points but it made no sense to me

Posted: 8/1/2018 5:44:33 PM EDT

[#32]

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Quoted:
And what is wrong with Fidelity? I mean Ill save the $4 and get awesome service, access to the Blackrock ETFs, good website and the rewards credit card...

View Quote View All Quotes

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Quote History

Quoted:

Quoted:
Just for reference. VTSAX (vanguard total stock market) is 0.04% fee when you invest 10,000$ or more.

So for a $10,000 investment. That is $4 a year.
That’s worth it to me for the way vanguard operates and its reputation.

And what is wrong with Fidelity? I mean Ill save the $4 and get awesome service, access to the Blackrock ETFs, good website and the rewards credit card...

this. i have some vanguard funds, at 100,000 price point its 40 bucks a year. a bit more than a case of heinekens. dunno about getting into a new fund. stocks are due for a downturn anyways.

Posted: 8/1/2018 5:46:22 PM EDT

[#33]

cool

Posted: 8/1/2018 5:48:05 PM EDT

[#34]

Schwab already had free ETF's to its customers that accomplish this... The only angle here would be retirement plans which allow you to invest in mm funds vs. self-directing into an ETF. Not a bad play but this seems more marketing gimmick than anything revolutionary.

Posted: 8/1/2018 5:49:53 PM EDT

[#35]

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No fees?

What are they trying to get out of this? Simply stealing clients away from other firms?

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Using the free fund as a loss leader, I imagine. Get you in the door and charge for their other funds when you want to diversify.

Posted: 8/1/2018 5:54:20 PM EDT

[#36]

I’m gonna move muh $2,200 account from vanguard to fidelity to save $3 a year. I’m rich, bitch!

Posted: 8/1/2018 6:05:46 PM EDT

[#37]

Verifying the correct ticker symbols, are these correct?

FSTMX - ~18% per year
FSIVX - A real stinker

Posted: 8/1/2018 6:08:13 PM EDT

[#38]

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What does this mean? I looked up basis points but it made no sense to me

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Quoted:

Quoted:
I'll stay with Vanguard and let them to continue to bet me out of 4 basis points.

Good for Fidelity though. I am sure others will follow.

What does this mean? I looked up basis points but it made no sense to me

Fancy pants way of saying percentages. Multiply the number by .0001

25 basis points
25x.0001=.0025=0.25%

Posted: 8/1/2018 6:09:09 PM EDT

[#39]

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Quoted:
I’m gonna move muh $2,200 account from vanguard to fidelity to save $3 a year. I’m rich, bitch!

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It's laughable.

Posted: 8/1/2018 6:09:50 PM EDT

[#40]

Nice time shift 200k

Posted: 8/1/2018 6:17:29 PM EDT

[#41]

Salad says?

Posted: 8/1/2018 6:19:04 PM EDT

[#42]

I mean, low fees is nice. But what is the performance of the funds?

Posted: 8/1/2018 6:22:57 PM EDT

[#43]

So what is GD's thoughts on index funds right now? I have money in one and it's done OK but wondering if I should get out before it crashes next year or two.

Posted: 8/1/2018 6:25:56 PM EDT

[#44]

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this. i have some vanguard funds, at 100,000 price point its 40 bucks a year. a bit more than a case of heinekens. dunno about getting into a new fund. stocks are due for a downturn anyways.

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Any Monday now.

Posted: 8/1/2018 6:27:48 PM EDT

[#45]

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Quoted:
Time to move some money.

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Same here

Posted: 8/1/2018 6:31:36 PM EDT

[#46]

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So what is GD's thoughts on index funds right now? I have money in one and it's done OK but wondering if I should get out before it crashes next year or two.

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That's like asking what is GD's thought on noodles right now

Posted: 8/1/2018 6:32:52 PM EDT

[#47]

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Same here

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Quoted:

Quoted:
Time to move some money.

Same here

Price is what you pay, value is what you get

Posted: 8/1/2018 6:33:39 PM EDT

[#48]

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Quoted:
So what is GD's thoughts on index funds right now? I have money in one and it's done OK but wondering if I should get out before it crashes next year or two.

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There have been Arfcommers saying to pull money out of the market and that it was due for a crash for at least 5 years now. So I guess the answer to your question is 5+ years ago.

Posted: 8/1/2018 6:35:45 PM EDT

[#49]

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Quoted:
So what is GD's thoughts on index funds right now? I have money in one and it's done OK but wondering if I should get out before it crashes next year or two.

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I can promise you the market will crash in the future.

Posted: 8/1/2018 6:35:57 PM EDT

[#50]

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Quoted:

Price is what you pay, value is what you get

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what value do you get paying someone to mirror the S&P 500?

[ARCHIVED THREAD] - Well boys...salad says are here...Fidelity one ups Vanguard. (Page 1 of 5)

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