FBGRX
FIDELITY BLUE CHIP GROWTH FUND FIDELITY BLUE CHIP GROWTH FUND
Mentions (24Hr)
0.00% Today
Reddit Posts
Where to park money for a down payment for about 1-1.5 years?
Investment strategy for a 5-10 year goal. Thoughts?
60 years old - do I choose blue chip or total market, or both?
60 years old - do I choose blue chip or total market, or both?
Portfolio choices for taxable account for growth and minimize taxes?
IRA question - Dividend pay next to nothing this past year
19 years old with 100k invested so far... advice?
Best portfolio of fidelity funds for long term investing
Wanting to invest $5,000 in 5 different indexes - should I do it slowly or just dump it at once?
Should I get rid of my FBGRX position and dump more into SPY soon
Is it worth it to have individual stocks of the same growth fund I already have?
Apps I can read about the stock market and current articles
Mentions
I'm with fidelity and currently in FBGRX, FZROX, FZILX, and FNILX. I know Financial planning is based on goals, i plan on retiring early, how early? That remains to be seen. I put about 65-70% of what I invest into FBGRX and the rest is distributed evenly. Is there a fund or other plan I should go with?
I would actually ask what makes JGASX better than, say FBGRX? Or any other large cap.
Simplest solution is to just allocate a portion of your money into growth funds. E.g. lets look at 20 year performance of VIIIX (mutual fund version of VOO with 0.02% expense ratio) vs FBGRX (Fidelity growth fund with 0.6% expense ratio). Started 20 years ago, with $1K initial and $1K per month added with DRIP. Total contributions is $241K. FBGRX now is worth \~1.7M VIIIX now is worth \~$750K
Can’t go wrong with qqq or FBGRX I’ve made well on both
Target Date retirement funds are way too conservative imo, being too heavily invested in bonds and only adding more bonds to the mix as it gets closer to the target date. If you have the ability, you're better off putting at least half of your funds into an S&P index (FXAIX) and then a mix of other indices. Personally I like FSELX (semis) and FBGRX (blue chips) for growth and a smaller mix of funds like FSAGX (gold) and FLCOX (large cap value) for a little more diversity and defensiveness.
Your portfolio is super confusing, and seems terribly misaligned with the concerns you're bringing up. Half of your portfolio is FBGRX. Which indicates you made a bet on growth to be better for your long term investments. If so, you have to be able to handle the good, bad, and ugly of growth. It can give you good returns, but at the same time tends to draw down heavily during a downturn. The "AI bubble" is just the latest boom in the cycle, and this fund is over 50% allocated to companies that would lose value if the bubble bursts. If you can't stomach the ups and downs, it might be time to get off this rollercoaster. if not, at least significantly lower the allocation to it. Next, you have 2 SP500 funds. They provide no diversity. Just stick to one, or count all of them together in the allocation. Next you have 2 different target date funds, which makes no sense. TDFs are supposed to reduce the complexity of your portfolio not increase it. Plus they both have overlapping equities and even overlap with SP500 and FBGRX. Effectively, you have even larger exposure to FBGRX that is hidden under the TDFs. If I was in your place, I'd suggest just pick a TDF, and go all in on it, or if you want to go a-la-carte, add one bond fund and one International find and get fully out of TDFs. As for FBGRX, really evaluate if it's worth staying invested in this fund where you're panicking about a crash that hasn't even happened. How would you react if one actually happens? Would you just panic sell? If so, might as well reduce exposure while it's on the upwards trend?
FBGRX and FXAIX are both fine funds. (Although if you can buy ETFs, use them instead of mutual funds.) \> I also considered putting all of my FXAIX money into 1-2 safe consumer staples stocks such as PG and Walmart, What on Earth for? There is nothing "safe" about individual stocks of any kind compared to the S&P500. PG has lost 9% the past year! The two ETFs you have are fine. If you want "safer", just dump the TSLA and RKLB... and also the NVDA is you really want to make a point of it. Redistribute the funds into the two ETFs... or if you really need to feel like you need to own something else, don't focus on high risk low return individual stocks like PG, but rather get a third ETF like a mid or small cap factor ETF.
I agree. Would you keep both the OP FBGRX and FXAIX knowing that they share many of the top 10 stocks?
I performed a 10-year backtest of your portfolio. this can't predict the future, but it gives us a means to compare. I base my remarks on what I learned. you are right that FBGRX has powered along, but beneath the fireworks is a lot of volatility, which could burn you if the market takes a turn. to hold three aggressive stocks entails big risks specific to each one. you could fold these into a big FBGRX position, i.e., hold 55 FBGRX, 45 FXAIX, but that is not unlike holding all FXAIX, but with more volatility. so I would roll it all into FXAIX. the market has been phenomenal these last few years, but many risks are arising, such as recent issues with credit quality and geopolitical turmoil. you want to catch up, but job #1 is to protect your capital. that's why I suggest a balanced approach, i.e., FXAIX.
My portfolio is currently 100% allocated in FXAIX and I plan to change it to about 90/10% allocated into FXAIX/FBGRX for a little bit more of a growth tilt. Is there any more ways that I can optimize my portfolio towards moderate growth? I feel like I lost a decade investing and am trying to catch up by optimizing. Projections currently value the investments at about 1.3 million in 25 years but I’d like to retire earlier. Right now the biggest problem in my investing is low income and having to start over after losing my career. Thanks for the replies.
Bought some FCNTX and FBGRX. I’m long AMZN and AVGO for the past several years but the concentration in AVGO became too much so I sold some and bought those funds. I’m not a good enough picker to keep getting lucky, let the funds with a good track record do it for me.
There is a ton of overlap in the funds. I feel as long as you just stay the course you are fine. Possibly add in FSELX and FNCMX from the FBGRX.
FBGRX has been straight-up insane, but having 70% of your portfolio there is basically playing tech roulette. Slowly moving 5% a month is smart — keeps your tax hit in check and avoids freaking out over timing the market.Honestly, at 38 with a 20+ year horizon, you’re fine.
I looked at the top 10 holdings of FBGRX and FSKAX and of the postions that are held in both, your total portoflio exposure is: NVDA 12.12% APPL 7.24% MSFT 6.17% AMZN 5.54% GOOG/GOOGL: 4.58% META: 3.79% AVGO: 2.44% Now that's definitely overweight NVDA, but at 38, I'm not sure I'd be too concerned about it, it's probably going to fix itself at some point, lol. The rest of the allocations I'd be pretty comfortable with. FBGRX is 16.13% NVDA and FSKAX is only 7.02% So if you want to trim, I'd probably trim FBGRX, it'll offload more NVDA weight per share than FSKAX. And maybe deploy new money to the other stuff you're talking about. And some of the money market funds if you really think you have too much. If your portfolio is $1 mln or less, I wouldn't say 12% in a money market fund is too much.
Off topic but I bought FBGRX in like 2018 and end up selling around 2021 for college expenses. I had a few thousand dollars at one point. Is it going to sting knowing how much I’d have today?
Fidelity Blue Chip Growth (FBGRX) set it and forget it.
I’m holding FBGRX, am I in the right place
I've been investing for a bit over a year now with a combination of FXIAX & FBGRX. IRA is in FZROX & FZILX; like another commentor
FBGRX is a great buy and hold, as is FCNTX
QQQ, FBGRX, IWY, VUG, FDSVX, VOOG, FCNTX, FXAIX, have 10-year total returns of 523% to 299%.
I've been pretty happy with FBGRX. That blue chip fund has performed reasonably well imo.
Ya my hardest decision has been on what to invest in in the taxable account. For the IRA I'm split amongst VOO, FBGRX, and MSFT. For the taxable account, I'm in between VTI, NFLX, NVDA, V, and META.
I wouldn't choose a stock. Invest in an ETF instead. I recommend FBGRX or FBCG to all my younger family and friends. I have now owned it for 10 years. In those 10 years it's up almost 600%. A $10,000 investment is now valued at almost $60K. FBGRX and FBCG are basically the same. FBGRX is a mutual fund while FBCG is an ETF. An investor has to tolerate the volatility. Another suggestion is FSELX a mutual fund. It's a tech ETF. Over the last 10 years it has an annualized return of almost 30%. A $10k investment 10 years ago would be worth almost $124k. It has an annualized rate of almost 30% the last 10 years. Again, it's highly volatile. An ETF option if SMH or SOXX. Both tech funds. SMH has done slightly better the last 10 years. I own significant amounts in all of the funds I mentioned.
So my current situation is I have a pension and a 457 I’m putting into. With whatever money I can spare each check I started to invest in QQQM, SMH, FBGRX, and a little crypto. Just was curious about some individual stocks. It’s usually only like $200-300 a check that I can put into all those total
A solid base of SGOV with a dash of VOO and a sprinkle of FBGRX. Don’t blend. Just let it be.
>- 3.4k in my Roth IRA (Just started). Aggressively invested in a split between 6 ETF's: FBGRX, FBIOX, FOCPX, FSCSX, FSELX, and FSPTX. Would you be opposed to just investing simply in FZROX (Fidelity Zero Total Market Index Fund) instead? Do you have particular opinions in your investments rather than just buying the whole hay stack? >My main question is should I pause contribution to the Roth IRA to accelerate the home buying process? Roth IRA contributions can be withdrawn at any time for any reason without penalty, so if you really want to you can meet halfway and contribute to your Roth IRA as before and then pull out the contributions you made when you buy the house. You'll get to at least enjoy the potential growth free of tax. That being said though, you should look to reducing your general expenditure and/or increasing your income first. Make a budget, as the canned saying goes.
I was over invested in large cap tech, so I sold out of FBGRX which was a great buy 2-3 years ago
For 2025 50% money market with occasional options trades 20% FXAIX 15% FCNTX 14% AKREX 1% FBGRX
I’m 19 looking for some advice. Overall I’m down 15% but FSELX is down 33% and FBGRX is down 18% individually. Is that really bad and unrecoverable? Should I sell at a loss and buy more of when S&P dips more? Please be nice! I know I’m kinda dumb.
Well, CENN and CRLBF are total crap gambles, so you shouldn’t be surprised when they lose all of their value. FBGRX is fine. Any ‘growth’ focused fund is going to be down when the market is in a correction like it is now. Nothing to worry about here. The rest is fine and will recover. If you want to limit your losses in the future, lay off the risky meme crap like weed stocks (CRLBF) and niche small EV startups (CENN).
I did similar FBGRX. Long term it's great.
Well a divorce is never really considered in investing, but picking the right spouse is probably more important than fund management. Mistakes...thinking I can out pace the 500 day trading. Getting to smart in the long run did not beat the 500...just be the large index. I am SPY/QQQ mix with AAPL as a lucky long hold, and a smattering of tech indexes like FBGRX, FSELK etc.
FBGRX 10% - 11.4% NVDA FITLX 17% - 9.3% NVDA FSELX 21% - 23.6% NVDA It’s a tad bit higher than the 7% you mentioned, but to me, that still seems a bit high for one single company. Seeing how it reacted to the DeepSeek news, that could drive big swings in the IRA. I didn’t mention it in the original post but there’s also a lot of overlap with other stocks between FGBRX and FITLX. There also pushing me towards making a move
I vote no on bonds until 60. You already have CDs in savings. If you can get to a Roth the earlier the better. I am 58 looking at retirement with not enough Roth. Will be fixing that situation over several years when income allows it. You have chosen large index funds as the base investments...that is where you should be. Along with a small set of stocks as a hobby investment. At 35 I would be more aggressive/risk into growth like FBGRX, SPYG and QQQ
Good Iuck - they’ve been doing these sell offs and bounces for a reason. My gut tells me at some point this or early next year. It’s not coming back. This might not even come back for a while. 10% cash 10% 4 spy calls average af prob 600 exp june 80% FBGRX
Reddit loves VOO and I have no qualms with that! Just wanted to throw in another fund option. I have FBGRX (Fidelity Blue Chip Growth) and its done fantastic for me. You could always invest in both VOO and FBGRX
Consider some more aggressive investments as well: SPYG, FBGRX, QQQM, FSELK, and then there are the leveraged high risk worth a few thousand: SPYU, QLD, TQQQ.
You do not need income until retirement. Skip the dividends and go for growth or 500 index. FXAIX, FBGRX, FNCMX, and a bit of SPYU, QQQ, QLD....
Absolutely. As a long term hold it makes the most sense. I would consider some more aggressive funds. FBGRX, FSELK,Qqqm to name a few.
The majority of my retirement is in FBGRX and FBQGX 50/50, and every year one of those has beat the market for me, most years both. The most frequent lagger is FBQGX. FBGRX has not lost to the market yet
I think I’m gonna sell all my NVDA and stick it into FBGRX. NVDA is gonna be fragile stock and I’m afraid it’s turning into Cisco.
I have about $1k/month to invest. This will be a part of my retirement plan. I am 42 and in the US, so I’ve got about 25 years to work with. I plan in investing in the below funds/etf’s. I’m looking at a growth strategy, and have high tolerance for risk for the time being. Buy and hold is the current plan, and I will reevaluate annually. Is there one/more I should take off the list, or any I should put on? What proportion of each would you put in the portfolio? I invest with Fidelity, hence the Fidelity funds. FXAIX ONEQ FSPGX FBGRX FSELX
Correct. And the 500 is really dominated by just 7 to 10 major companies….not really 500. So picking large broad market is just like your choice of how to mix it. Still the 500 is the one to beat or just be the 500. I have FSelx, FBGRX which both beat the 500….but are just too loaded with the same companies.
He said Fidelity Blue Chip Fund. This is FBGRX. I don’t have an opinion, just looked up the ticket for you.
Find the flow chart, and give yourself a Roth funding every year with this money until it is all in the Roth. You can still fund 2024 until April. this is salary dependant....so increasing the 401k deduction can help lower the AGI. Investment choices for me; SPY, QQQM, AAPL...then four yers ago when I got my inheritance I went to the Fidelity mutual fund search and sorted the 3 year returns. It landed me in FSELK, FBGRX, and FSPTX.
Sort Fidelity mutual funds with the best 3 year return and pick away. FSELK has been great as it caught the chip wave. FBGRX has done great. QQQM
You won’t go wrong in S&P index but as you invest more/add additional account types think about growth funds in your Roth like FBGRX if it is for long term investment and if you want to balance your portfolio with bonds or stable value can be done in other accounts… since tax free growth is the point of a Roth.
Get the flow chart. Maxing the 401k might be the best, or a Roth. Investment choice for me is SPY, QQQM, or something like FBGRX
FBGRX has been on fire the last five years. Not sure it can continue…
Maybe you should buy ETF and hold.. like IYW, QLD(2x qqq), FBGRX, SPUU (2x s&p500) If you want to get crazy TQQQ, TECL, FNGU I personally have 220k in NVDL (2x NVDA) im ready to make some MONEY and 130k of TECL TQQQ FNGU and like 6k of PTIR and Sounw I just invest not trade. TQQQ TECL FNGU can crash very hard, and take forever to recover.. so if you do get these either get small amount or realize, you might have to make a judgement call if things are down 60% how far things will go, normal stocks you just hold and sell years later for more usually, 3x leveraged you have to make a call or own a hedge
I did a split for years with SPY and QQQ. Or a version of them. I put my kids in FBGRX years ago and looked it up last week and it was like top performer in Fidelity!
What are some stocks involved in FBGRX?
Just do FBGRX my favorite fund.
and the people managing the FBGRX fund are paying attention and diversifying based on this shit ya?
Ah, got it. Yeah, personally, I'm a 100% FXAIX kinda guy. But if you wanted a *tilt*, add 10-20%(max) or something like FBGRX. I can't predict the future so I wish you all the success, either way you're on the right track! Keep it up! I wonder, however, definately consolidate your 8 funds into like 2 max.
FBGRX, but it’s a tiny portion of the fund. There’s no way to get a large percentage exposure except the other two options I gave.
Hey, I am 19 years old living in the US and have been investing for a few years in a Roth IRA. I don't have any big expenses coming up, putting in $50 each month through these positions. I don't mind being risky since I am young, time horizon is retirement. Currently, my portfolio looks like this: 1% Ford 3% VBR (Small Cap Value ETF) 19% VB (Small Cap Index) 22% FXAIX (fidelity 500 index) 19% FELC (Enhanced Large Cap) 36% FBGRX (Blue chip growth) Ford is more of an experiment with some technical analysis sheet I created, also the dividend is nice. Any general advice for my portfolio breakdown?
FBGRX for more proof. But also why I think we have room for growth. Spy high while the tech giants aren’t ATH? If they kick in, could be a fun ride Or the top is in and we should start offloading
Fidelity Investment Portfolio Rate My Fidelity Investments 31, married, no kids: high risk tolerance/aggressive portfolio Just getting into mutual fund investing; looking to see if the funds I picked are sound choices. All are morning star 4 or 5 star rated. Going to ride the wave for 20-30 years FBGRX 10% FBNDX. 8% FCNTX. 20% FGRTX. 15% FIVFX. 12% FMILX. 10% FSELX. 15% FSPGX. 10%
I recently got my first full-time job am looking for some tips to diversify my investments / profile. Investing with the purpose of buying a house and retirement down the line. For context I am 23 and I make 140k a year pre tax (USA) Not in a situation where I need to touch the money immediately as well but I do prefer some safety with how I invest and I have no debt. Here is how I currently invest each paycheck: 1. maxing out 401k pretax with employer contribution to hit IRS limit After that 2. 50% to savings (rate is 2%, probably need a HYSA so open to options for that) 3. 15% to checking 4. 15% to fidelity to invest in FBGRX, FXAIX, and any other stocks I also have money sitting in a mutual fund I never add to and ~30k in my bank account I don’t know how to invest besides a HYSA any advice or tips would be very much appreciated!
With the Roth I am in 44% VOO, about 7% SCHD, and 48% in FBGRX. I am beginning to build an emergency fund but only have about $500 saved up in it so far because my expenses are so low. I could also theoretically sell off positions within my individual brokerage account if absolutely necessary but the only real thing I would need emergency fund for would be health related issues since I do not use my car regularly while at college.
Great job being wise and frugal at such a young age. You have a wonderful future ahead of you. Roth IRAs are an excellent choice because you are funding them with money you have already paid income tax on. This will save you a ton of money when you begin withdrawing this money. Over the next 40+ years your deposits in this account will multiply many times over due to the principle of “compounding interest.” You can open a Roth IRA through any broker; I have used E*trade for over a decade with no complaints. Investing in mutual funds allows you to buy into entire sectors of the market (biotech, pharmaceuticals, energy, etc.) so you don’t need to understand how to evaluate individual stocks. Som examples are FSELX and FBGRX. Many of these mutual funds do not have minimum orders, transaction fees, etc. so they are not usually cost prohibitive. Roth IRAs have a maximum annual contribution of $7k each per tax year (this changes with inflation) and you cannot contribute to a Roth IRA if you make more than $240k/yr as a couple. Godspeed! Hope this helps.
FDKLX is made up of index funds. There is no "less returns". There's "less returns" than just investing in the S&P500 for the past 15 years but that's not the goal of a TDF. And if you just wanted maximum recent performance you wouldn't invest in the S&P you'd invest in some growth index like VUG or FBGRX which have killed the S&P the past 10+ years. But why stop there? Fidelity's semi conductor fund FSELX has outperformed all of those funds over 10 years
Voo gives no added variety as its basically the same as FXAIX. the addition of the midcap index is fine but seems haphazard. I recommend building out a real portfolio plan. FBGRX is a very popular large cap growth product. really was just meh until about 2013 then all the sudden became pretty good. last year it announced that it was no longer a diversified mutual fund and would go as "non-diversified" because it wanted to over own Nvidia farther than regulations would allow. You should of received a disclosure but not many people know. That said, because of that bet it's only been so/so cumulatively compared to its index and the sp500 the last 3 or 4 years. I think its fine but its at on of overlap, don't tilt too heavy. I would consider international and smaller stocks. Re backdoor roth, this is really requires a deeper look into financials, taxes, and requires some real planning. I'd read up on it.
FBGRX does charges more at 0.68%. Its return is middle of the road and 1 year, 5 year return is better than your favorite Vanguard. Anyone who spent time research will tell you this much: 1. Over last 5 years: Fidelity blue chip returns 103% vs +84% from Vanguard SP derivative. 2. Over last 1 year, Fidelity blue chip (actively managed fund) beats Vanguard S&P (computer generated) by a large amount that expense ratio variance will not offset. +27.8% vs +22.4%. T Rowe and Schwab blue chip both are actively managed also have a significant edge. That goes with MGK, ishares also. If you are concerned with expense shop around. Plenty of cheaper expense funds other than posted above.
Series 6 licensee here. Let's get this straight. There are many S&P500 derivatives that are even needing less upfront expense fees besides Vanguard. Both Fidelity and Schwab are good examples of how much others charge and some claim their derivative return is better or worse than Vanguard version. There are minute differences in weight and stocks. Vanguard version has lower expense than SPY but to claim it is the best one fits it all, it shows one's maturity. It is debable that volatility matters less or more. Plenty of academic finance papers contradict eather other. We have plenty of bias and confused investors. FBGRX does charges more at 0.68%. Its return is middle of the road and 1 year, 5 year return is better than your favorite Vanguard. Anyone who spent time research will tell you this much: 1. Over last 5 years: Fidelity blue chip returns 103% vs +84% from Vanguard SP derivative. 2. Over last 1 year, Fidelity blue chip (active managed fund) beats Vanguard S&P (computer generated) by a large amount that expense ratio variance will not offset. +27.8% vs +22.4%. T Rowe and Schwab blue chip both are actively managed also have a significant edge. That goes with MGK, ishares also. If you are concerned with expense shop around. Plenty of cheaper expense funds other than posted above.
I noticed that Morningstar compares FBGRX to the "US Large-Mid Cap Broad Growth Index" (MULMBGGU), which I can’t chart so Is there a similar index that’s chartable, like the Russell 1000?
Morningstar compares performance of FBGRX to its "US Large-Mid Cap Broad Growth Index", MULMBGGU, but that's not one I can chart. What's an index similar to that, which I can chart. Russel1000 ? I first tried to post in the main thread, but it was disallowed for being less than 560 characters. Is this the proper place for a question like this?
The fact that you started (and in your 20s) is the most important (I did the same). Keep adding to it, weekly and be patient. This account will be seven figures soon enough. Your VOO & FXAIX are pretty much doing the same thing. I hope you have dividend reinvest turned on. Speaking personally, I would get out of the "O" while it's in the black and go more aggressive, or another Fidelity fund, but you have to do you. (FBGRX worked great for me, but I bought it hard during the COVID panic drop days.)
I was in a couple mutual funds at the time that essentially would look like QQQ and VTI today. I have changed that since and now most of my money is in FBGRX, FDGRX, FSKAX My kids college fund / Utma are in QQQM, VOO, and VTI - mind you there is a ton of overlap in a lot of these so any blue chip/large cap ETF is going to perform similarly.
Forget high E.R. FBGRX (FXAIX already has that growth base covered), and forget the high E.R. Fido Select Retail. Or any sector fund for that matter. SP500 index fund is boring but generally does just fine by itself. I learned that lesson sort of late. Nice low E.R. also.
Hi, 19 year old who recently opened a Fidelity brokerage and ROTH IRA with $500 in the former and $2000 in the latter. I was wondering if my portfolio is considered too complicated or risky, or if there is a better approach. Currently in my ROTH, I have split my money 80% into FXAIX, 10% into FSELX, and 10% into FBGRX. To my understanding, the most common advice for new investors is to put all your money into FXAIX and call it a day. However, I'm ok with taking a more aggressive approach and the current 10 year return percentages of FSELX and FBGRX seemed like a no brainer to choose them. Of course, I only invested 10% into each of them due to the much higher expense ratios and risk. Would it be ok to invest even more into these as their high returns outweigh the expense ratios, or am I wrong to think this? For my brokerage, I have it set up 50% FSKAX and 40% FSPGX for their low expense ratios and great 1 year returns, but also placed 10% to FCNTX for its even higher 1 year return. (Like FSELX, I only kept it at 10% as I noticed the higher expense ratio). I've also realized that my portfolio is essentially completely invested into domestic tech. I was searching for funds within other sectors like utilities and health care but their funds seemed to have higher expense ratios with lower returns. International funds also seemed to have very low returns compared to the ones I had already selected. Am I going about this the right way? I'm still very new to this. Thank you for your help.
Hi all! 43F feeling really happy today because I finally opened and funded my Roth IRA. I made a budget and it's going to be tight but I'll be able to max it out by April 15, 2025 and I'll be able to do so while continuing contributions (even increasing them!) to my 403b and I'll still be able to contribute to my HYSA. I'm obviously very new to investing, so I'm wondering just looking for people's input as I try to learn more. Feedback on any of the following would be really appreciated. My Roth IRA is with Fidelity for ease since that's where my 403b is. My 403b is a TDF that I'm trying to understand better, but a couple of people on reddit looked at it and said it's not bad at all. For my Roth, so far I have just picked FXAIX. I know a lot of people also like VOO - are the tax advantages of an ETF a moot point when it comes to a Roth since a Roth is tax advantaged in general? Is there ever a scenario where it would make sense to have both FXAIX and FBGRX? I know there's a lot of overlap, but I know there are some differences too and that at least historically FBGRX has had higher long term returns. If people feel like sharing your favorite way to incorporate International stocks I would love some input. If you don't think they are that important, I'd be interested to hear about that too. I know I'm late to the party, but I'm genuinely excited that I'm really starting to invest in my future self.
* Index based or actively managed describes how the contents of a fund are chosen. * ETF or mutual fund describes how the fund trades. When creating a fund, you pair 1 "contents chosen" with 1 "how it trades" for 4 main types of funds. Examples in parenthesis: ||**ETF**|**Mutual Fund**| |:-|:-|:-| |**Actively Managed**|Actively Managed ETF (ARKK)|Actively Managed Mutual Fund (FBGRX)| |**Index Based**|Index ETF (SCHF)|Index Mutual Fund (FSKAX)| Long term tends to almost always favor index funds (something like 90% of actively managed fall behind indexing by 10 or 15 years). VOO is the S&P 500, which is good, but better is available. See single fund portfolios: https://www.reddit.com/r/Bogleheads/comments/tg1az5/should_i_invest_in_x_index_fund_a_simple_faq/ This is one of over a dozen links I have that can help explain the reasoning behind that: * https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets) [a total US market fund combines S&P 500 + extended market into one]
More so then FBGRX? That’s risky too, no?
I mean, I hope it works out like this, but in reality having 50% of your fund in MSFT, Nvidia, Apple ... ehh. They might continue to dominate, but if they don't, you are going to get fucked. People hate on Active Funds endlessly here and most are indeed garbage, but there are a few good ones, and I would trust FBGRX and FDGRX to continue to outperform QQQ and other similar passive funds on a risk adjusted basis, and have a better chance of avoiding a calamity that could really hurt a passive fund like QQQ. They actually earn their expense ratio, and if you can get a subsidized expense ratio on them in an employer 401k ... 110%, get them. Even FCNTX ... really good fund and superior to an S&P500 index fund. There are a lot of Fidelity Active Funds that are actually really quite good and have outperformed their benchmarks for several decades, and you can look at that performance in any number of ways ... Fidelity Funds tend to be outperformers. If you want your 15-20% CAGR over the next 10 years, your best bet imo is putting your money in one of those 3 Fidelity Funds I mentioned that are ran by guys who actually really know what they are doing and don't rip you off. You might not get there, but it is your best shot as a common person.
My money is at Fidelity. Primary holdings are FZROX (S&P500) and FBGRX (Blue Chip Growth). Basically, 30% FZROX, 60% FBGRX, balance is stocks. If the market twitches, right now treasuries are a touch over 5% yield. You can drive yourself bonkers trying to follow a large number of stocks. Let the well regarded fund managers do that.
Congrats! But the trick is doing this every year, not just 1. Beating the S&P500 in the short term, especially over the last year, wasn't tricky. Simply being invested in FSELX (75% 1 year return) or FBGRX (45% 1 year return) would've easily done it.
>What’s wrong with XLK being a tech sector fund? Sectors can fall out of favor. Even tech. The only type of risk that tech only is, is single sector risk, which is an *uncompensated* risk: one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ >Uncompensated risk is very different; it is the risk specific to an individual company, **sector,** or country. >I’ve read a couple articles about ETFs vs mutual funds. Looks like one is actively managed and one is passively managed? Not true. There are actively managed ETFs and index based (passive) mutual funds. * Index based or actively managed describes how the contents of a fund are chosen. * ETF or mutual fund describes how the fund trades. When creating a fund, you pair 1 "contents chosen" with 1 "how it trades" for 4 main types of funds. Examples in parenthesis: ||**ETF**|**Mutual Fund**| |:-|:-|:-| |**Actively Managed**|Actively Managed ETF (ARKK)|Actively Managed Mutual Fund (FBGRX)| |**Index Based**|Index ETF (SCHF)|Index Mutual Fund (FSKAX)| >I don’t really understand what the difference between active and passive when it comes to managed funds. Are the holdings of the fund chosen by strictly a rules based system, or is there a team of people picking and choosing what to include and at what weight? The rules based (index) is cheaper (expense ratio: management fees), there's less to deal with.
For stocks all you need is FXAIX, not FBGRX. Keep it simple and lowest cost expense ratio. FTBFX depending on age - if young 100% FXAIX is fine. 120 - age for % of portfolio allocated to bond fund is one metric though I probably won't ever exceed 20% personally. Teach her about dollar cost averaging and to train yourself not to get scared when the market drops. That's when everything is going on sale. This may be a helpful resource for her: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy
Not much to add - I agree completely, and I'm mostly commenting in hopes the OP reads the above comment. * I think the biggest issue with FBGRX isn't even the 0.50% ER, but the overlap. FXAIX and FBGRX are effectively the same thing, except the latter costs more than ten times more than the former. 0.50% isn't the worst I've seen, but you're not getting anything for the extra cost. * That said, I don't think there's anything wrong with going with the S&P 500 over Total Market. For someone completely new to investing, the S&P 500 has the advantage of being a familiar term which gets mentioned on the news all the time. This could be a good or bad thing, but it's often used as a proxy for the market as a whole because it actually correlates very well with the market as a whole. * More than the fund choices, I think the most important think for her to understand is volatility - that she can expect her portfolio to go down in value pretty regularly, and there's no cause to panic. This is 100% about emotions. * The flip side to that is that many people, after 4-5 years of seeing their stocks go up while bonds remain flat, start asking themselves, "Why am I holding bonds?". Which is a fair question for someone young or well-versed in volatility, but there will be inevitably be a pullback. * Ditto if interest rates continue to climb and bonds drop in price.
This is a great start. There are many who believe in only indexes and their time has been the last 15 years. Indexing for most of your portfolio is still recommended, but I actually like the balance of also having FBGRX. It is my opinion (and other economists) that over the next 15 years, it will be important to also have some funds in active managed funds like the Blue Chip Growth Fund. A little expense ratio is not bad if the performance is worth it. Active funds have the ability to buy faster than an index fund (index funds follow the markets by making adjustments on what the market is doing). So, yes, the fee is a little higher, but the fund has a long history of solid performance. An idea for her, as she adds funds, maybe start to build a little non-US allocation. Many good international indexes. Another suggestion is to have her buy individual stock to make investing more real to her. For client's kids we often buy Apple (if they have an Apple phone/watch) or Disney stock if they are younger and love the movies. To say they own that directly makes investing a little more real than just owning it in an index.
> FBGRX (Blue chip growth-fidelity) I would definitely not do this one. It's got almost a 0.5 ER and it's just concentrating you in stocks you already hold in FXAIX. It's exposing you to concentration risk, which you can't expect to be compensated for in the long term. The way to avoid concentration risk is to diversify and to just do total stock market index funds. FSKAX or FZROX for US stocks and FTIHX or FZILX for international stocks. Anywhere from 60/40 to 80/20 for the equities portion of your portfolio. But yeah, assuming she's got both FXAIX and FBGRX in her portfolio it means a *huge* percentage of her wealth would be tied up in just a small handful of companies in the same country and in the same economic sector... which seems like a bad idea for a risk averse person! > FTBFX (Total Bond Fund-fidelity) There's a cheaper version of this one: FXNAX. But honestly, I'd skip both and go for FUAMX and/or FNBGX. Both FXNAX and FTBFX hold a lot of corporate bonds which are riskier than US treasuries and are also pretty highly correlated with the stock market (as in, corporations tend to default on their loans when the stock market crashes). So US treasury bonds are a safer hedge.
I made a table with examples that help show this (and additional explanation): * Index based or actively managed describes how the contents of a fund are chosen. * ETF or mutual fund describes how the fund trades. When creating a fund, you pair 1 "contents chosen" with 1 "how it trades" for 4 main types of funds. Examples in parenthesis: ||**ETF**|**Mutual Fund**| |:-|:-|:-| |**Actively Managed**|Actively Managed ETF (ARKK)|Actively Managed Mutual Fund (FBGRX)| |**Index Based**|Index ETF (SCHF)|Index Mutual Fund (FSKAX)|
Prior to the 2020 crash I didn’t really know anything about stocks. However, during late April of 2020, my former therapist and one of my close coworker-friends convinced me to invest in stocks being that the market had gone down significantly, and also because I was wasting a lot of my money on frivolous spending. When I started my stock journey, I had unfortunately got addicted to penny-stock trading because it was fun and addicting, but luckily, I realized how stupid that was and stopped trading after just a few weeks. I was very lucky though because through the risky trading I managed to profit like 13k. I learned through some members on one of the penny-stock subreddits that they were making gains by simply investing, instead of trading, so it eventually clicked with me that it’s important to invest and not to trade, especially for the average person just trying to save for the future. I still didn’t really know what I was doing but my Dad was buying AAPL, and also my good friends Dad is up hundreds of percent in gains on it as well, so I started with buying that. This was right before they did the split towards the end of 2020. Then I started buying a lot of Microsoft Amazon and Google as well. I didn’t even know that these were the magnificent seven or what have you, just that they were companies that I already knew somewhat and could research how they were profitable and doing well. Shortly after, I learned that buying individual stocks is usually not preferable compared to buying safer things like etfs, thus through balancing my portfolio, I now own a lot of safer etfs such as VOO. (My portfolio is still a bit aggressive leaning in that I still have like 50% magnificent seven, but I’m aggressively adding to my etfs to try and balance it more) I have to give a lot of credit to my Dad as well. Not only did he influence me to buy AAPL, but he also bought me a bunch of FBGRX way back during the 2008 crash. I’m up almost 1000% on that investment! So although my Dad never really directly taught me about stocks through words, he did one-better by actually buying me a lot of it, and during an opportune time when that market was way down! Thus, all in all, I never imagined I would have investments like I do, and never imagined they would be growing exponentially, especially in just four years or so. I’m very lucky and am so thankful for my family and friends that have helped me out and got the ball rolling for me. I’m an elder millennial at just under 41 and work two jobs (up to 70 hours a week) my primary job being a blue-collar type job. I’m not the type of person who is typically supposed to have a lot invested etc but through luck and lots of support I’ve been able to go from zero to possibly being able to retire a bit early compared to others. That’s why I empathize heavily with other Americans struggling financially. I never thought I would be able to change my situation but gradually I have been. It is possible! My 20s and early 30s were just paying off my student loans and other debt that I had foolishly accumulated. It feels so go to now be debt free and invested for the future!
What’s your thought on FBGRX? my retirement fund has an opportunity to transfer from target fund to fbgrx or dodgx? which one shall i go with?
Thanks bro. I was doing that recently by having fbgrx in my IRA which is a growh mutual fund. I've reached the conclusion from you and other commenters that dca indexing is the better route to go. I feel with individual stocks you have to time them better too because of the huge swings up and down. As far as my ira vs taxable can you have the same etf in both? So, if I choose voo, can I put voo in taxable and ira? Also, what is better between vti or voo? My other option was just to keep investing in fbgrx in my ira and put vti or voo in my taxable account. FBGRX is a fidelity growth fund, that's performed slightly better than voo from backtests that I've done.
VTI is the entire US market. Large, mid, and small cap. Growth, blend, and value investment styles. You get the entire kit and caboodle. VOO is the S&P 500, which is a large cap index with growth and blend styles. VOO is objectively more concentrated. Fewer holdings and more uniform types of holdings. If small or mid cap have a bumper cycle, VOO wouldn't capture that, but VTI would. Conversely, if small and mid cap have a sucker cycle, VTI would be exposed to that while VOO wouldn't. The reason they perform similarly in recent time is because they're both US market funds and they both contain the so-called magnificent seven that have been the driving force behind these huge gains for the last 4-6 years. Both of them are likely to give you growth over the next four years. You just need to determine your tolerance for the risk of not making gains by the 3-4 year mark. As for your IRA, I'm actually not familiar with FBGRX so I can't weigh in with my opinion.
Hey just guys, I am setting up an investment account for my son for when he is 18, and contributing to it through gifts he receives as baby/young child, and basically anytime I am able to spare some money, I was planning to open a brokerage account through fidelity (I already have my own brokerage and IRAs through them) and I typically use FXAIX, FBGRX and FCNTX when making long term investments for my own interests. I was just wondering if anyone had any better ideas, I have 18 years to grow this account so I’m okay being aggressive in the early goings. Thanks in advance advance
> Is swapping for a cheaper fund worth the tax payment? The difference between .58/.69 and .10 is .48/.59. What's bigger: .48%/.59%, or the tax rates of 24% or 37% or whatever? That's setting money on fire. Next, learn to ignore expense ratio for non-identical products and look at total return. As mentioned in another post, FBGRX actually returned nearly double what VOO in the past ten years... +394% versus +222%. Why spend one second thinking about "saving" the .59% difference in expense ratio when it would have cost you a fortune?
>VTI FXAIX makes up over 80% of the weight of VTI. >SCHD Roughly 46% of SCHD's holdings (by count, not weight) are in FXAIX. >VOO Is the same thing as FXAIX. >Im unsure of the strategy I should be taking when deciding between ETFs, and Indexs. * Index based or actively managed describes how the contents of a fund are chosen. * ETF or mutual fund describes how the fund trades. When creating a fund, you pair 1 "contents chosen" with 1 "how it trades" for 4 main types of funds. Examples in parenthesis: ||**ETF**|**Mutual Fund**| |:-|:-|:-| |**Actively Managed**|Actively Managed ETF (ARKK)|Actively Managed Mutual Fund (FBGRX)| |**Index Based**|Index ETF (SCHF)|Index Mutual Fund (FSKAX)| Stick to the "index" row. The "how it trades" isn't a big deal in comparison. >What should I be pairing with FXAIX? FTIHX or similar. Cover the rest of the world, there's been plenty of times it was the US dragging behind. FSMAX or similar. Cover the rest of the US market, while the past decade has favored large caps, smaller companies have had periods of excellent performance as well.
I would not sell the FBGRX despite its expense ratio. It's a solid growth fund and has long periods of beating the S&P 500 in excess of the ER. Have a look at the past 24-odd years: [https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=42ow2Af7WxPc5A8WhHmcYm](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=42ow2Af7WxPc5A8WhHmcYm)
QLD, VOOV, AAPL, IXUS, AVUV, VGT, FMAGX, FBGRX, FSKAX, FBTC Absolutely no idea what I’m doing lol
I'm 100% sure I outperformed you with my VTI, FBGRX, and SP 500 no brainer.
Good points. Looking at the visualized tool however, it still shows FBGRX higher at 17% vs VOO at 12%. It seems like fbgrx outperforms the market when it’s going up, and underperforms when it’s going down. But considering that the market is going up overall over the long term, it’s been coming out ahead? Maybe fbgrx is good while my risk tolerance is higher and then bias more broad market VOO/FXAIX later on?
Financial markets are extremely noisy. In most domains, ten years is a lot of data. If someone has been a good mechanic for ten years, you know they’ll be a good mechanic tomorrow. It’s very counterintuitive for people to learn that a decade of data provides almost zero information about a financial asset’s expected return. It’s especially difficult because it means you can’t draw wholesale lessons from personal experience. Here’s a example. Investing $10,000 in the total US stock market at the beginning of 2000 would have left you with [$9,847](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=2hWfHkVBOp0fx56FocU2aE) at the end of the decade. Investing in the same fund for a decade at the beginning of 2012 would instead have turned $10,000 into more than [$45,000](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=3igU6XpzPC4NmlrDflB2cP). Should we learn from the first decade that US stocks are a terrible investment? Or should we learn from the second decade that US stocks are a miraculous way to generate wealth, with little potential downside? The actual lesson is that, in systems as noisy as stock markets, even a full decade of information does not help us learn much about what to expect in the future. A secondary point is that you should make sure you’re checking total return instead of price changes. Total return includes reinvested dividends, but most people completely forget to include dividends when comparing asset returns. [Here’s an example using Portfolio Visualizer](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=5TW4nxNPrjaBHCLODggmzo) to compare the total return of VOO vs. FBGRX in the last ten years (Apr 2014 through Mar 2024).
Growth funds like FBGRX and HRSMX have lower expected return than the broad market (funds like FXAIX). If you want to keep it simple with high expected return, I would suggest standard total market funds or similar. [See here](https://github.com/investindex/Portfolio) for detailed explanation of why growth funds don’t have high returns in the long run.
Diversification in 401k doesn’t seem right? It’s been 3 years at current employer and I’ve allocated the 401k in the following FBGRX DODGX UBVFX HRSMX VEVIX FTIHX 30% each in the first two for mostly us exposure, and then 10-15% in the rest. 3 years later, fbgrx has returned 36% meanwhile everything else is single digits, some even under 5%. Another option available is FXAIX.. recently added. At this point I’m considering reallocating to 70% FXAIX and 30% FBGRX. Thoughts? I’m 32. Have 75k in this account and am maxing it now. Have another 200k an older 401k that’s mostly in a sp500 index fund. I know I’m proposing very heavy US only.. but also relatively young.