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>50% FZROX (basically VOO but no fees?) VOO + smaller US companies, but basically yes >20% FZILX (international emerging markets with no fees) emerging *and* developed markets >20% FTEC (fidelity tech etf) This is fine as long as you can stomach more volatility for a longer period of time >10% FESM (fidelity small cap) No need, since this is already covered in FZROX. Unless you're purposefully tilting towards small cap. Overall: looks good to me. I'd get into the market immediately. If you hadn't rolled over it's not like you would've moved all your 401k to cash.
Many investors have started to rotate out of large cap funds and into small and mid cap funds, because the large caps have gotten so highly valued. Also, the prospect of lower interest rates is brightening the outlook for smaller companies that rely more on debt financing than equity financing. FMDE is a solid mid cap fund. I recently bought its small cap sister fund, FESM. I like that these funds are actively managed, not just tracking an index, because I think you need to be choosy when investing in smaller companies. IVV and SPY track the S&P 500, which is an index of large cap stocks. So many people buy shares in those stocks that their share prices have gotten expensive relative to the companies' profitability and growth. Many investors are broadening their portfolios to smaller companies and non-US stocks.
I’ve been satisfied by the mid- and small-cap exposure provided by FMDE and FESM. Other commenters shared some decent options too. I started buying these two ETFs along side FELG (large cap) and they have outperformed it over the last few months.
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)
Small caps (e.g. R2000) ETFs like IWM, FESM and URTY (leveraged).
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.
Yes Fidelity ETFs: FDEM, FDEV, FELC, FESM, FIGB, FLDR, FLRG, FMDE, FSLEX, and FSMD.