Post by chang on Feb 12, 2021 6:09:04 GMT
I sold my MC index fund, and will re-buy if we get a correction of some sort (hah). However, I plan to buy an "Extended Market" fund as a better fit to an otherwise LC portfolio.
There are really only three choices: Vanguard's VEXAX/VXF, and Fidelity's FSMAX and FZIPX. The latter (FZIPX) is one of Fidelity's ZEROSM funds. The differences can be seen in the linked pages. FSMAX is so cheap (0.036%) that I consider the difference in ER negligible. Indeed, the ZERO funds look like a marketing gimmick, and I am wondering whether or not they might actually be less desirable in terms of the way the portfolio/index is maintained/tracked. FSMAX tracks the Dow Jones U.S. Completion Total Stock Market Index, while FZIPX tracks the "Fidelity U.S. Extended Investable Market Index" which is Fido's in-house index.
Using Fido's "compare charts" function, I looked at FSMAX and FZIPX together for the last 1Y, and indeed FSMAX pulled way ahead ($14,537 vs. $13,039 from a $10,000 start). That's a pretty big difference for two index funds that should be nearly identical.
Does anybody have experience with Fido's ZERO funds? And/or FZIPX in particular? Based on the 1Y charts, I would be inclined to buy FSMAX, unless there's more to this story. TIA.
(PS/Edit: If you compare the Fido pages for FSMAX and FZIPX, it will show FSMAX as SC/MC growth and FZIPX as SC/MC blend. However if you look at the M* blob-and-centroid, you will see that the portfolios are nearly identical; FSMAX's centroid just barely lands in the MCG box, while FZIPX's centroid just barely lands in the MCB box.)
There are really only three choices: Vanguard's VEXAX/VXF, and Fidelity's FSMAX and FZIPX. The latter (FZIPX) is one of Fidelity's ZEROSM funds. The differences can be seen in the linked pages. FSMAX is so cheap (0.036%) that I consider the difference in ER negligible. Indeed, the ZERO funds look like a marketing gimmick, and I am wondering whether or not they might actually be less desirable in terms of the way the portfolio/index is maintained/tracked. FSMAX tracks the Dow Jones U.S. Completion Total Stock Market Index, while FZIPX tracks the "Fidelity U.S. Extended Investable Market Index" which is Fido's in-house index.
Using Fido's "compare charts" function, I looked at FSMAX and FZIPX together for the last 1Y, and indeed FSMAX pulled way ahead ($14,537 vs. $13,039 from a $10,000 start). That's a pretty big difference for two index funds that should be nearly identical.
Does anybody have experience with Fido's ZERO funds? And/or FZIPX in particular? Based on the 1Y charts, I would be inclined to buy FSMAX, unless there's more to this story. TIA.
(PS/Edit: If you compare the Fido pages for FSMAX and FZIPX, it will show FSMAX as SC/MC growth and FZIPX as SC/MC blend. However if you look at the M* blob-and-centroid, you will see that the portfolios are nearly identical; FSMAX's centroid just barely lands in the MCG box, while FZIPX's centroid just barely lands in the MCB box.)
