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1. Buy an SP500 Index fund and not a NASDAQ or FTSE/Russell Index fund. 2. Buy a low-cost managed fund that invests based on fundamentals, like FELC or SPGP.
**FELC (**Fidelity Enhanced Large Cap Core ETF) has done well with a 0.18% expense ratio. It typically behaves like a S&P 500 fund (e.g. VOO) but doesn't just mindlessly follow the S&P 500.
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 $50 each month through these positions. I don't mind being risky since I am young, time horizon is retirement. Currently, my portfolio looks like this: 1% Ford 3% VBR (Small Cap Value ETF) 19% VB (Small Cap Index) 22% FXAIX (fidelity 500 index) 19% FELC (Enhanced Large Cap) 36% FBGRX (Blue chip growth) Ford is more of an experiment with some technical analysis sheet I created, also the dividend is nice. Any general advice for my portfolio breakdown?
https://digital.fidelity.com/prgw/digital/research/quote/dashboard/summary?symbol=FELC It has 1, 3 and 5 year annualized returns and compares right on the website, no need to recompute. It seems to do very slightly worse on a 19 year streak.
FXAIX - up 21.09% over one year, up 87.73% over five. FELC - up 20.5% over one year, not sure it existed 5 years ago.
FSAIX - up 26% over the last two years FELC - up 20% over the last two years
Ahhh that makes sense. Perfect. Additionally, I’ve changed my holdings a bit VOO: 23% FSDAX 14.3% APPLE 13 NVDA 11 QCOM 9.9 FELC 8.8 FDEV 7.1 FTEC 6.2 FDEM & FMDE 2 Shoudl I keep these larger holdings in Apple and NVDA still? Or would you recommend chucking them into VOO
New investor - under 21y/o ~1000$ portfolio TICKER | % of ACC | % G/L AAPL 14.39% -0.05% FDEM 2.94 -2.28 FDEV 7.85 -2.02 FELC 23.03 +0.76 FESM 1.18 +2.71 FIGB 6.84 +2.95 FMDE 2.61 +0.16 FSDAX 15.66 +0.61 NVDA 13.51 -6.96 (Ha.) VOO 11.98 +0.05 (Just Purchased)
I had a question for everyone. I'm new to investing and I'm curious what it actually means to diversify. Let me explain my question. I've always assumed the idea of diversification means to just have different stocks, bonds, EFTs, etc. Because of this, I have purchased shares from a number of Fidelity ETFs. (FELC, FIGB, FDEV, FDEM, FLDR, FMDE, FESM) But then I read other people talking about just going with VOO or FXIAX or something like that. If I just purchased VOO, I'm I still diversifying my portfolio? Or am I not, because it is only one thing? Thanks for answering this Noobie question. Please let me know if there are articles I can read.
> No but want passive income which I want to reinvest for now. Passive income is more or less a myth. The thing to remember with dividends is that when you get a dividend, it means you're taking some of your money out of the market. If you then decide to reinvest it, you're then just putting it back in. It would have made more sense to never take it out in the first place. Long-term, dividend stocks will tend to underperform stocks that spit out fewer dividends. > Also for FTEC and FELC, they actually performed very well with not much invested into them compared to any other index fund. Well -- yeah. That's because tech and large cap stocks have done extremely well recently. Does that mean they will outperform the market going forward? There is no way to know! If you happen to have a crystal ball that tells you, let me know. > What if I just put all the similar stocks into VOO? You could do 100% VOO. You'd be less diversified (higher risk for same expected returns) than 100% VT or 100% VTI. But you could certainly do it.
>No but want passive income which I want to reinvest for now. Dividends are not free money, they do not increase your account value, as the share price drops by the distribution amount. >What if I just put all the similar stocks into VOO? Why VOO and not VTI? Why ignore thousands of US companies? >Also for FTEC and FELC, they actually performed very well with not much invested into them compared to any other index fund. This past decade tended to favor US, large caps, and tech. It hasn't always and won't always be that way.
>Why? Are you retired? No but want passive income which I want to reinvest for now. What if I just put all the similar stocks into VOO? Also for FTEC and FELC, they actually performed very well with not much invested into them compared to any other index fund. I also have an index fund I didn't mention cause I heard SCHD was good.
> I have SPY, VOO and FXAIX that all seem to be similar. Should I just sell my SPY and put it into VOO? I might keep FXAIX. These aren't just "similar" - they are all the exact same thing. > FTEC, FELC, VIG, ONEQ, VGT, VTI These will all be similar because they all contain stocks that at already contained by VOO, SPY and FXAIX. This portfolio is a bit of a of a hot mess. A portfolio of 100% VTI would actually be more diverse than what you current have. Might want to start with that until you get the hang of this.
FELC is an actively managed fund whereas FNILX is passively managed and tracks an index. FELC is also an ETF and FNILX is a mutual fund. While both funds may hold the same stocks - the allocation is different and FELC is managed with the goal of maximizing capital appreciation using large cap US companies.
I am late to the game age wise, but my friend/cpa told me I’m in a unique position financially where I will benefit with having a traditional IRA . I have begun funding it weekly, but I have to do my contribution for last year. I went with Fidelity and have decided at least for the next 3 months I’m going to go with FNLIX. But I noticed there is a portfolio builder within the app and when playing around with it it reccomended putting 40% of a hypothetical investment into FELC. It looks like FELC holds basically the exact same stocks as FNILX, but has some expenses associated with it. (Don’t really understand what that means tbh) I want to learn- and I’ve gone over other posts that mention these stocks, but haven’t really found what the difference is? Why would I diversify with the same stocks? Is it just a percentage holding difference? Is it more “managed”?
Yes Fidelity ETFs: FDEM, FDEV, FELC, FESM, FIGB, FLDR, FLRG, FMDE, FSLEX, and FSMD.
FELC is showing as having a $23 bid ask spread on my watch list 