FTIHX

Cruian

>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.

Somoch-MoraguerRRR

Fidelity is pretty awesome. I use their cash management account for checking (unlimited ATM fee reimbursement!) and a brokerage account in lieu of high yield savings, in which I hold treasury bills and some of Fidelity’s excellent money market funds (for example FDLXX gets you better after tax yield than a HYSA because it holds treasuries which are exempt from state and local taxes) As an investment platform It’s less automated than Betterment (which I recently moved from) but does most everything you need it to do without the 0.25% fee. If you want automated investing, you can pay for that with Fidelity, too, but at your age I would just go all in on FSKAX or FXAIX and chill, maybe a dash of FTIHX for international exposure if you’re feeling fancy. MUCH later in life you can add bond exposure.

FlyLikeACrane

For context, I am turning 30 this year. So if went the target date fund route, I’d choose the 2055 or 2060 fund. Otherwise, my thoughts are to go 70% into FXAIX, 10% into FSSNX, 15% into FSMDX, and 5% into FTIHX. Would I be better off just going 100% into FXAIX?

Somoch-MoraguerRRR

I’m a crypto degen and I’m here to tell you: please don’t put a significant amount into crypto, especially as crypto markets are just setting new all time highs, *especially* if you have no other investments to fall back on. First, create an account with a major brokerage. I like Fidelity for a bunch of reasons (great funds, better trading tools, more flexible than Vanguard, lets you dabble in crypto if you really want to, great checking account product too) Then ask yourself: if the market saw a big contraction in the next year and your portfolio lost 30% of its value, how would you feel? Do you want to use this money for anything in the next 5 years? 10 years? 20? I’ll say that if you plan to use the money in five years or less, put all of it in a money market fund. SPAXX is great. FDLXX has a roughly similar yield but is not subject to state and local taxes because it invests mostly in treasuries. If you live in a state with income tax or you are a high earner, FDLXX may provide better after-tax returns than SPAXX. You should research more from here if this sounds appealing. If you are not comfortable stomaching a possible 30% loss in value over the next 10 years, you should invest in stocks but tilt more conservative with a bond allocation. Anywhere between 10-40% of the money should go into a low cost, diversified bond fund like BND. The remainder should go into diversified index funds—either some mix of US and International like FSKAX or VTI plus FTIHX or VXUS. Or you could take the lazy (but still extremely valid and maybe even preferable) approach of putting all of your stock allocation—that is, whatever you don’t put into bonds—into a global fund like VT. If you have some risk tolerance and a longer time horizon, I would say it’s worth considering a 5% allocation to Bitcoin either by holding it directly on Fidelity Crypto or Coinbase or whatever, or by holding one of the Bitcoin ETFs like FBTC or IBIT. But don’t go crazy. Crypto his high risk / high reward. Most of the folks you see here will tell you it’s tantamount to gambling. I disagree on balance, but they’re not entirely off base. This is an entire debate unto itself.

Cruian

>TDFs - If I want to have the fund for longer, is it possible to move the fund to another TDF? Example, if I’m retiring 2050, but decide to move my retirement by another decade (2060) is that doable? Yes, they're (usually) just mutual funds and trade just like any other mutual fund. I said usually because recently ETF TDFs were released. >Would TDFs yield similar returns as FSKAX + FTIHX? I know it depends on a few things but just generally speaking? It depends on which one you use. Something like a 2060 TDF will likely effectively be 90% FSKAX + FTIHX or equivalent, with 10% bonds and similar. Something like a 2025 TDF will be far heavier in bonds than the 2060.

Ok_Assignment4100

Man, guess TDFs might be in for me then — a set it and forget it method. A question: 1) TDFs - If I want to have the fund for longer, is it possible to move the fund to another TDF? Example, if I’m retiring 2050, but decide to move my retirement by another decade (2060) is that doable? 2) Would TDFs yield similar returns as FSKAX + FTIHX? I know it depends on a few things but just generally speaking?

Ok_Assignment4100

Looks like FSKAX + FTIHX is looking more viable for me now.

the_leviathan711

The market weight of FSKAX and FTIHX is 62% FSKAX/38% FTIHX. FXAIX is about 85% of FSKAX. Your age/time horizon isn't particularly relevant to this question since no one knows whether US stocks or international stocks will perform better in the future. What is relevant there is whether or not you want bonds in your portfolio or not.

Ok_Assignment4100

Thank you. What would the perfect allocation be for FXAIX and FTIHX? Considering my age (38) and time horizon?

the_leviathan711

> 1) Is there anything else to add along with FXAIX? Like, is it important to be as diversified in my retirement portfolio? My goal is to keep it simple to focus on capital gains/total returns from one fund. But, if there’s suggestions to make it a 2-fund or 3-fund portfolio, I’ll have a listen to suggestions as well as handle my due diligence. Yes, diversity is great! FXAIX is only the top 500 companies in the US stock market. The two obvious complements to FXAIX would be to add small cap US stocks and international stocks. FSMAX is the equivalent of FXAIX for smaller caps and FTIHX is the equivalent for international stocks. You can also do FSKAX which is FXAIX + FSMAX and then add in FTIHX. > 2) Since Roth IRA is a tax-advantaged account (After-tax dollar grow tax free), are dividend ETF funds something I should consider? Or look into dividends in general if I want to generate cash flow later in my retirement? Nah > 2) Would lump-sum investing or DCAing investing be ideal? [Don't try and time the market, just invest the money as you have it.](https://www.schwab.com/learn/story/does-market-timing-work)

ApplicationNo51

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.

cielos525

Sorry, can you please elaborate whats the good idea? The 70/30 split b/w FSKAX & FTIHX, or buying a fund targeting more mid/small caps?

cielos525

**Seeking Advice on Portfolio Allocation: Balancing Large-Cap and Mid/Small-Cap Funds** Yesterday, during my call with a Fidelity investment advisor, I discussed my desire to allocate my taxable brokerage portfolio in a 30/70 split between two index funds: Fidelity® Total International Index Fund (FTIHX) and Fidelity® Total Market Index Fund (FSKAX). However, the advisor pointed out that selecting FSKAX might result in an overweighting towards large-cap stocks, despite some initial research indicating it includes approximately 18% mid-cap and 9% small-cap stocks. This led to a consideration: should I opt for a separate fund that specifically targets mid-cap and small-cap stocks? If so, do you have any recommendations for such a fund? For reference I am 36 and my partner is 39.

tired_ani

I don’t think I have any dry powder left to pick stocks. I am looking away for the next 3 months after my final job i.e buying international (AVDV, FTIHX) this week

the_leviathan711

> My strategy is to basically invest into them (80% into FSKAX and 20% into FTIHX; 80% into VTI and 20% into VXUS). Both of these portfolios will perform identically. It's less Vanguard vs. Fidelity and more about if you prefer the mechanisms of mutual funds or ETFs.

Ok_Assignment4100

Yeah, the combo of FSKAX & FTIHX for my Roth IRA will probably do it for me.

andybmcc

FTIHX is pretty much the entire investable ex-US market. FZILX follows a Fidelity in-house "index" and lacks small cap. FSGGX lacks small cap. There are also funds that only contain developed or emerging markets. I like FTIHX.

Cruian

Coverage. FTIHX has the most holdings of those 3, with the other 2 about the same. Possibly market cap weights covered. FZILX can't be moved out of Fidelity, but in an IRA that isn't a big deal, it'll just add 1-2 market days if you ever decide to move brokerage.

Cruian

>I'm going to start investing into Fidelity's FSFAX (Total Market Index Fund) into my Roth IRA, Pick 1 from: FTIHX, FZILX, or FSGGX. There's benefits to going global as updated to the US only that FSKAX would be. >Also, I'm considering doing hand-selecting of dividend stocks and tap into the DRIP and let it compound over time. However, just wanted to know if there are those who've opted for Dividend ETFs ? The purpose is really to take care of month expenses (e.g., Rent, groceries, gas, etc.). For non-retirement accounts? First, dividends aren't free money, the share price drops by the distribution amount. Second, even dividends focused find like SCHD only distribute a small amount of the share price, so you'll need a lot of it before it makes any noticeable difference. It'll take years before the distributions even pays for itself.

MattieShoes

Your investments aren't exactly what I'd do, but they're fine. You were probably unlucky with timing. Markets made crazy gains from April 2020 to around the end of 2021, took a dump through most of 2022, and have gone up a lot in 2023/2024. At some point, they'll take a dump again. Maybe next week, maybe 2 years from now, nobody knows when. * That means you likely invested near late 2021 when the market peaked. * Over the first year, you may have lost 20% in FSKAX and 30% in FTIHX. * Since then, you probably did well with both * You probably broke even a couple months ago Your results could look very different if you pushed that start date forward or back six months. It's just bad timing on your part, kind of like a miniature version of investing at the peak of the dot com boom, then immediately taking losses and taking years to get back to even. --- Re: Bonds, nobody knows the future, but if you're still in your 20s, 0% in bonds seems like the way for the next couple decades anyway. -- The one huge, glaring issue I see is that you didn't max out your IRA in 2022, 2023, or 2024.

changinginthebigsky

assuming you entered the market around halfway through 2021- you sort of started investing near the peak of a market run up. what followed was nearly 2 years of turbulence and up/downs that make it so where if you bought FSKAX around July 1 2021.. you've seen maybe a ~12 percent gain when comparing to it's price today. and FTIHX? that thing has essentially bled money since you invested in it. assuming again you invested around July 1 2021, you are looking at almost a 10 percent loss from that date compared to today's price. so there's the other half of your answer... lump sum investing can be a little rough for scenarios such as this. had you DCA'd along the way, you'd be seeing larger gains.

Historical_Low4458

I have both FSKAX and FTIHX in my 401k. Those choices are fine. While I do think bonds do belong in any portfolio, if you're looking for more growth, then bonds isn't the answer. I would consider changing up the allocation. Personally, I don't have FTIHX more than 15% of my 401k. However, when you contribute more to your IRA, you need to think about whether you want to keep it at the current 72/28 allocation or change it to something else like 80% U.S. and 20% international.

HugeResearcher3500

I have a similar make up. 80% US/20% Ex-US. The entire market kind of tanked in 2023, so you're still recovering from that. If you had put 6k in FSKAX this time in 2023, it would be up 31%. FTIHX would be up 15%.

SnS2500

That is an extremely NON-aggressive holding for someone in their 20s. Bonds are even less aggressive and would have returned you worse than what you have returned. When you say "2ish" years ago, that means you invested first in 2022, when stocks got totally clobbered. You have since done much better since January 2023. Since March 15, 2022, the S&P500 and FSKAX are up about 24%. FTIHX is up 14%. Not sure exactly about FXNAX, but it proably is up a bit over 4%. You have conservative holdings now, offering protection against large loss but also preventing large gain. Those two funds are common for people to hold, but obviously one has done better than the other the past two years. If that return, during these turbulent times, doesn't satisfy you, then you should take your time to educate yourself on what more aggressive options are available.

ILoveKombucha

That's such a small amount of money that they gave you that I'd probably just leave it be. If any o those companies continue to kick ass, you'll feel like "yay, I have a small piece of that!" And if they suck really bad, you'll feel like "hey, this is why I don't pick individual stocks... at least I'm not really out anything!" Then just put all of YOUR money into index funds. To answer your question, buying individual stocks that are in an index you also own is the opposite of diversifying - it's concentrating your investment. You would want to do this if you believe that the narrower subset of investments (a particular stock, say) is going to outperform the index. Of course, no one knows what's going to happen in the future, though some like to pretend they do. Personally, I reserve about 5% of my portfolio for gambling. My 5% gamble is FTEC (information technology ETF). It concentrates my investments in stuff like Microsoft, Apple, Nvidia, etc. Stuff that's already quite big in my S&P index fund. I'm OK with that. By keeping it to 5% or less, I can sleep well regardless how it performs. Outside of that, I invest in S&P500 (FXAIX) and a broad international index fund (FTIHX) that contains both developed and emerging markets. I think this is a sensible way to invest. One could totally do without my chosen FTEC ETF... and arguably that would be better.

Cruian

Why not swap FXAIX to FSKAX to cover S&P 500 + US extended in one and change FSPSX to FTIHX to cover both developed and Emerging?

taplar

Your FXAIX/FTIHX investments are fairly standard recommendations and fine. Why do you need "passive income"?

Successful-Meal2152

\- I am 19 and live in the US. I am currently an unemployed college student just making money off of internships and saving up any money that I get from family lol. \- My objective is to not have any stalling money and that grows overtime. \- I really don't think I need this money any time soon but I would like to allocate a small percent of my money in a place where I can get my hands in quicker than the largesr percentage of my money \- My risk tolerance is pretty mid, not too high to gamble it but not too safe where I am too stingy about where it will be going. \- My current holdings are just with FXIAX and FTIHX which has a combined total of $2.2k and I have $1,000 in HYSA, and $400 in checking. \- What more can I do to earn passive income? Maybe any advice on how I can earn money at the side without it overlapping with my college internships and work too much?

the_leviathan711

Well, there is definitely no benefit to *that* at all. If you were 98% FXAIX and 2% FSKAX then you would actually be 96.6% in FXAIX. You could be 90% FXAIX and 10% in FSMAX (the part of the US stock market that isn't the top 500 companies). Or you could be 90% FXAIX and 10% FTIHX (the entire rest of the planet). Right now you've got all your money in just 500 countries that are all based in the same country. You're missing out on stocks from all over the world and from small and medium sized companies. If any of them have explosive growth at any point in your lifetime, you won't see a penny of it. Or I guess right now 2% of your portfolio might see a penny of it.

Zero_Gravity067

I was saying you still have time to max your 6,500 in 2023 for your Roth and 7000 for 2024 I would do that first. It all looks good but personal opinion (with a grain of salt)was basically saying you are a little too much tech/large cap for my taste. I would like to less see VUG more small cap and 25-30% international overall Swap FSAKAX and FTIHX for FZROX and FZILX respectively if you are at fidelity anyway . VXUS gets you a foreign tax credit in a brokerage if you overweight it there but that’s not a big deal but is nice to know.

astros440

28m. Been researching for a week now. I feel pretty good about this, I'd just love feedback or reassurance. IRA and 401K goal is moderate-strong growth, and brokerage goal is aggressive growth for comfort into my 30s and 40s. [https://i.imgur.com/GyNeBjt.png](https://i.imgur.com/GyNeBjt.png) * Brokerage. Fund - Initial Investment - % of portfolio * VGT - $4,100, 38% * VOO - $3,600, 33% * AVUV - $1,700, 16% * VXUS - $600, 6% * BND - $800, 7% * Roth IRA. Fund - Initial Allocation - % of portfolio * FSKAX (total market index) - $4,500, 69% * FTIHX (total international index) - $1,250, 19% * FXNAX (US bond index) - $740, 12% * 401K. * VLXVX (Vanguard 2065 target) * 54% Domestic * 36% International * 10% Bonds Overall between all 3 portfolios I have a spread of: • 69% Domestic • 22% International • 9% Bonds Takeaway Q's: \-Can I be more aggressive in my brokerage? \-Can I disregard VXUS and BND for some more focus into VGT and VOO?

Nevetz4ever

401k has 20% FTIHX and Roth has 10% of it

Kayladrose38

Roth IRA Portfolio Start Up Hello, My husband and I just created our first retirement account in fidelity. A Roth IRA. We contributed the $6500 for 2023 and are doing the full for 2024 as well. I am 30 and my husband is 32. Is this an appropriate strategy for both of us for our portfolio. We figure to not get any bonds now as we are still fairly young. Me 80% FSKAX 20% FTIHX Him 70% FXAIX 20% FSPSX 10% FSSNX I know for him he could also swap it out with the zero fee ones but regardless it is not a huge difference there. Should we do anything drastically different or should we have the same exact portfolio. First time doing any sort of investment so we want to make sure we are on the right track with our initial $13,500 each and not doing anything stupid. Thank you so much

Cruian

>Are simple market funds like FXAIX enough? I'd personally go broader, as in also cover the US extended market (FSKAX instead of FXAIX would do this as FSKAX is US total market) and ex-US (international, such as FTIHX; as the US isn't always the best place to be invested). >Or should I also be including tax inefficient funds such as REIT funds? S&P 500 funds I believe include some REITs that qualify at their market cap weight. Total market funds hold even more REIT companies at market cap weight. So adding a REIT fund would be adding concentration (not diversification).

AICHEngineer

The 5-factor capital asset pricing model begs to differ. I've got a 40 yr time horizon and you're telling me to buy large caps when their shiller cape levels are at the same magnitude as pre great-depression and as the dotcom bubble runup? It's not over complicated when youre a college educated chemical engineer whose hobby is reading dissertations and financial treatises. It's also only recently possible for the retail investor due to the deployment of Avantis and Dimensional ETFs that allow domestic and international value targeted investing. Even with the value winter and the last 15 years of easy money era large crap growth, small value has still beaten large growth over the last 30 years. DSFVX, dimensional's small cap value mutual fund now available as DFSV in ETF format returned a geometric CAGR of 11.13% after fees. that's 118 basis points above the s&p500's geometric return of 9.95%. I'm perfectly content with my portfolio. 401k is maxed each year at 50/50 FXAIX/FTIHX (VOO, VXUS essentially) and my IRA is 100% small cap value or emerging markets value funds a la AVUV, AVDV, and AVES (mostly AVUV, keeping it roughly 60/40 US/international access all accounts). It's five funds, each with their own risk profile. It's extremely more diversified than a simple s&p index fund, and as a student of finance and history, the expected returns are potently higher, especially with country diversification. The safe withdrawal rate in retirement will be substantially higher than a pure large cap, one country strategy. All the gen Z and millennials on this site seem to have no understanding that the US underperformed international markets from 1950-1989 (do the math, that's 39 years) and the US underperformed in the 00's. They also seem completely oblivious to the fact that over every single rolling 20 year period, small cap value has outperformed the market. Every single 20 year period. That's how you capitalize on undiversifiable systemic risk premia (have a long time horizon to weather sequence risk). The practical complications involved with rebalancing a portfolio once a year between 5 simple buckets based on percentages is trivial. It takes minutes every year.

RightYouAreKen1

Maybe even some FSKAX/FTIHX too...

NaturalThe1

Looking for some advice on how to invest when at the end of the order of operations: 29M - America - 75K a year I have a solid emergency fund in a HYSA and no debt. No HSA through work under current insurance. Already Maxing 401K and IRA - 401K and IRA are both 2060 TDFs. SS TRGT RET 2060 M and FDKLX respectively. I've seen the strong opinions on TDFs but I'll probably keep them. I like the set and forget ease of them and the expense ratios aren't bad I think, even if they hold bonds. My question is what should I invest my money in now? The 401K and IRA holdings look very diversified to me. Should I invest the rest in something like FXAIX + FTIHX in my taxable brokerage even if it means double dipping my holdings? Start buying individual stocks? As I understand there's no set path at this point, but curious what you all would recommend. This money I invest I don't need to touch for a long time and can be risky with it as well.

andybmcc

1) Fidelity, Vanguard, or Schwab. I like Fidelity, it has a decent interface, great customer support, and is the only one of the three that allows automated ETF investing. 2) Choose low fee broad market funds. 3) FSKAX is the mutual fund that tracks the total US market, and has a 0.015% expense ratio. It's hard to find a cheaper fund. FTIHX is the total international fund. I'd say 60-100% FSKAX and the rest FTIHX is a great start for global equity. I have about 20% international exposure. 4) No fees at Fidelity for the account or transactions of ETFs or Fidelity mutual funds. The only fees are from the expense ratios of the funds you hold. You'll get that no matter where you invest.

LilBogleHead

The money market fund is based off of current interest rates. As soon as the fed starts cutting rates, the money market fund % will drop probably by those same amounts, just like a HYSA would. Bonds like a total bond market fund invest in bonds that don’t mature for an average of 5-7 years, so those rates can hold steady for longer. Personally, I think you should change your portfolio to FSKAX and FTIHX to get both the total US market and total international market, and then maybe do 10-20% total bonds.

ubdumass

From 11/15/21 to Today: FTIHX -11% = 6K FXIAX +6% = $16K VTI +2% = 3K Looks about right. Look up the cost basis from Nov 2021 to determine your cumulative returns.

andybmcc

They are proprietary indices, and no small cap in FZILX.  The fee difference is negligible.  I still stick with the more established FSKAX and FTIHX.

bam2350

I think that is too international heavy; back FTIHX down to 20% or less. You might consider some portion in REIT. And yes, more FXNAX.

brianmcg321

At 23 be 100% equities 80% FSKAX 20% FTIHX 0% FXNAX

greytoc

Both are large blend international mutual funds from Fidelity which are managed by Geode Capital. FSPSX benchmarks against MSCI Europe, Australasia, and Far East Index. So that means that the fund composition is largely developed markets. FTIHX benchmarks against MSCI All Country World index (ex US). So that means that it has an allocation to emerging markets. FSPSX is mostly passive and I believe the turnover is lower so expense ratio is also lower than FTIHX. As far as which is better - it depends on whether you want exposure to emerging markets.

andybmcc

That's OK. You could get some mid/small cap and emerging market exposure with FSKAX and FTIHX instead.

WaySmoked

Is that equivalent to 60% FSKAX and 40% FTIHX

AICHEngineer

The only functional reason to do this these days, since 401k and IRA accounts can be pre or post tax now, is that IRAs have greater investment options. With fidelity, my IRA can invest in the entire market. In my 401k with fidelity, all I have are a bunch of TDF, some garbage cap weight funds like mid cap or small cap, and then FXAIX/FTIHX which is basically VOO/VXUS. I max my Roth IRA ASAP before I max my 401k because I want to access AVUV and AVNV, American and international value ETFs from Avantis. Still, that flexibility isn't as important as tax advantages, so I do not fill a brokerage account before contributing the limit on a 401k.

AICHEngineer

Historically, it's skewing averages due to the easy money era and bull run starting 2009. Same with the US stock market. All of the outperformance in US megacaps is since 2009. Your friend is going to get f***** in the ass in the dotcom bubble part 2. Mark my words, remind me. I'm upping my allocations to Avantis value funds and international. AVUV, AVNV, AVDV, FTIHX, and of course FXAIX (VOO basically, can't ignore 48% of the global stock market).

andybmcc

At Fidelity, FSKAX is the total US market, FTIHX is the ex-US including emerging markets. These are great funds, and they are amongst the cheapest around. They are in my Roth IRA. Don't buy Vanguard mutual funds at Fidelity, they will come with fees. The ETFs are fine if you really want them.

andybmcc

I like the Fidelity funds in tax-advantaged accounts, as long as they are held at Fidelity or your provider doesn't charge fees to buy them. I hold FXAIX, FSMAX, FSKAX, and FTIHX in various accounts.

andybmcc

It's hard to beat the ER of the Fidelity index mutual funds. FXNAX, FSKAX, FTIHX are all dirt cheap to hold.

General-Way9065

Index funds unless you are researching stocks heavily. I use fidelity and have a broad US market/S&P 500 (FSKAX/FXAIX OR FSPGX), broad international (FTIHX), and maybe some tech funds like FTEC & FSELX if wanna dabble. HYSA are good if you wanna play it safe. That's all you rly need IMO.

andybmcc

FSKAX and FTIHX are a great way to start.

nostratic

FXAIX is the S&P 500, which is 500 larger US companies. it's already very concentrated in tech, about 25% of the companies in that category. FSMAX is an 'extended market' fund, covering the smaller American companies that aren't listed in the S&P 500. FTIHX is international companies. I'd recommend at least 10% each in the extended market and international funds. 20% is better.

General-Way9065

Looks good. Im very new to this stuff so do i wouldn't know what's best but from what I've learned it looks pretty good. I've seen many ppl saying they won't be getting into bonds until closer to retirement (50s) but that small of a % probably doesn't hurt. I've got 70% in FSKAX/FXAIX, 20% in FTIHX, 10% SPLIT BETWEEN in FTEC/FSELX. I stayed away from the zero funds because they could trigger a taxable event in the case you leave fidelity. If you plan to stick with fidelity, I'd say you're golden.

andybmcc

FSKAX is great. I like all equity in at least the Roth because it's not going to be taxed again. Bonds are usually better in pre-tax. FTIHX is the Fidelity international fund. I think anything from 0-40% (none to around market cap) is reasonable.

ILoveKombucha

Appreciate it. After I asked the question here, I researched it a bit on the Bogleheads forum, and it looks like a total international actually has outperformed developed only over a long time period. At the same time, the difference is really small, probably owing to the fact that at market cap weight, emerging is a small percentage of a total international fund. I'll probably stick to FTIHX (total international).

MountainStoneMist

Currently I follow a three fund portfolio minus the bond fund, I will allocate to bonds when I am closer to retirement. https://www.bogleheads.org/wiki/Three-fund\_portfolio Topic of bonds: [https://www.bogleheads.org/forum/viewtopic.php?t=328019](https://www.bogleheads.org/forum/viewtopic.php?t=328019) Topic of international: [https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as\_a\_us\_based\_investor\_what\_percentage\_of\_your/](https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as_a_us_based_investor_what_percentage_of_your/) The important thing is to follow an asset allocation strategy and stick with it. I would also avoid performance chasing. When I was younger I wasted a lot of time picking investments thinking this would make me rich, instead I learned that I should have focused more on improving my income and increasing my contribution rate. Your greatest wealth building tool is your income. The more money you earn the more money you can invest and reach your goals even sooner, it's as simple as that. [https://www.getrichslowly.org/building-wealth/](https://www.getrichslowly.org/building-wealth/) You will always find "better" portfolios out there, the main thing is to pick one and stick with it: [https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/](https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/) > fidelity with 25% spilt between FSKAX, FSPSX, FSSNX, FXAIX What made you pick this allocation, is it the Dave Ramsey portfolio? ​ FSKAX is a total u.s. market index fund that included the S&P 500 stocks and small and mid cap stocks, I would drop FSSNX and FXAIX. Instead of FSPSX I would used a Total International Index Fund like FTIHX, FSPSX does not include emerging markets and FTIHX does include them. I would use caution with advice that tells you to drop your international allocation, this is an indication that the advice is coming from someone with recency bias. If this was my portfolio, it would look like this: 70% FSKAX 30% FTIHX

andybmcc

Check out FSKAX and FTIHX.

spevis1

I’m 23, have about 2k to invest into my Roth, want it to grow over a significant period of time and build my retirement. I don’t mind risk because I am working with no debt yet, however I want a lot of diversification. I have an idea of what I I want to do but just want to make sure my ideas make the most sense. 9% in FRZOX 16% in FXAIX 6% in FTIHX 16% in SCHD 17% in QQQM 28% in VOO 10% I’m not sure The first 3 are already invested into, the second 3 are what I plan to do.

Cruian

>i researched the return rate would be steady and consistent That is definitely not true. It can be a very bumpy ride. >Am I missing out by not splitting up my assets or would that seem like a safe route for the long term? Going global (such as adding FTIHX) can both help increase returns and reduce volatility compared to a 100% US portfolio like FXAIX would be. In the long run smaller caps tend to beat larger caps (FXAIX being only large caps really, maybe a bit on the upper end of mid caps).

andybmcc

Good stuff. I don't really see the point of the dividend funds. You could simplify the Roth IRA with just FSKAX. The personal brokerage is a little more tricky because of tax implications. Instead of the individual cap weight funds, maybe consider just going in FSKAX. FTIHX is the Fidelity international fund that already includes emerging markets. You could have something pretty similar with just those two funds. Everything looks solid though, keep at it and you'll be set up.

andybmcc

I wouldn't chase dividends. At Fidelity, you can create a good base out of FSKAX and FTIHX. In taxable, consider the ETFs VTI and VXUS. They are very similar and will shield you from capital gains distributions. Good news is that Fidelity now allows automatic investing into ETFs. Solid long term investing plans usually have the bulk in broad market index funds.

PlantOk956

**UPDATE:** Hi Everyone. It looks like, from what everyone had said so far, it's best to... 1. Keep the 403b at 100% with the target fund (Fidelity Freedom Index 2055 Fund) 2. Open a separate brokerage account or Roth IRA, and invest in FSKAX, FXAIX, and/or FTIHX. Pick 2 at most, and do something like a 60%/40% split. 3. Lastly, let it be and periodically check on the status. 4. For any gains, set to automatically reinvest them into the same securities. Increased amount = higher percentage gains on upswings. I believe that sums it up. If there's any more refinement needed, please let me know. Thank you all for your extremely helpful feedback, for a newbie like me!

andybmcc

>I plan to maximize contributions once my income allows but for the time being I have started with a $100 one time deposit. This is great! I wish I started at 18. The thing you have on your side is time. Even if it's just little contributions, if you stay consistent, it will really pay off. You don't have to max it, and I wouldn't treat it as an all or nothing. Put away whatever you can as soon as you can. ​ >60% into FXAIX and 40% into FZROX. I found these 2 indexes to be the most preached upon whilst doing my research. Would you fellow investors say that sticking to that 60/40 investment is a safe strike for retirement? As someone else said, these are kind of redundant. FXAIX invests in the largest 500 US companies, FZROX invests in companies to track the entire US market (including mid and small companies). Simple and consistent is the name of the game. I'd suggest a total US market to start out (FZROX or FSKAX). At some point, you'll probably want to add an international fund (FZILX or FTIHX), but I wouldn't worry too much about that until you get rolling. The "Z" funds don't cost anything to hold. The downside is that they don't really follow any established public index, it's all internal to Fidelity. The more established funds have VERY low fees. FSKAX charges 0.015%. ​ >Also do these indexes accumulate compound interest or is there a specific process I have to go through to actually consistently rack up compound interest? The gains will compound. If you have $100 and it gains 10% in the first year, you have $110 (gained $10). If it gains 10% the next year, you have $121 (gained $11). The price compounds on its own, nothing you have to do. As for dividends, they usually pay out quarterly or bi-annually, depending on what specific fund you have. At Fidelity, those will be automatically re-invested in your mutual funds. So, the fund will pay out the dividend and you'll immediately buy more shares of the same fund with that payout. That's the default, but you can change where those go in your options. I suggest just keeping the default in place for now.

andybmcc

I have the usual US (FSKAX, or FXAIX and FSMAX combo), international (FTIHX), and then the oddball is AVUV. Don't sleep on the small cap value if you have a decent horizon.

veritas41

I hear what you’re saying. Though with factors you would need to find data going back 30+ years and none of these funds have been around that long. My current portfolio is 70% FSKAX and 30% FTIHX which are Fidelity’s version of VTI and VXUS. I’ll probably stick with that, but I find it interesting looking at the various risk factor funds.

andybmcc

ETFs are more portable and avoid capital gains distributions. The Fidelity MFs have slightly lower ERs. Fidelity is in the process of allowing automatic ETF investing. I say VTI or FSKAX, dealer's choice. They can pair well with VXUS or FTIHX.

Cruian

Good for the US part of a profit, but would need to be paired with, at minimum, something like FTIHX.

andybmcc

I do FSKAX, FTIHX, and AVUV. If you do decide to swap any MFs in Fidelity, you can do an "exchange" so you're never holding cash. They sell/buy together at the same pricing event.

vacantly-visible

If you're buying the whole stock market it just isn't necessary to buy another fund for a certain sector, or stock pick any individual stocks, because you already own just about every stock there is. I'm your age and in my Roth IRA I only own FDKLX, a target date index fund. I'm deciding whether or not to change it, but if I did, I would only do *one* of these: FSKAX+FTIHX, or VSKAX+VTIAX, or VTI+VXUS. Keep it simple!

ithinktherefore88

Seems reasonable. Although I'd prefer FTIHX over FSPSX due to being more diversified.

Cruian

>Could also add one for Emerging Markets Or just change FSPSX out for FTIHX or FSGGX.

Cruian

Why ignore emerging markets? FTIHX or FSGGX both contain both developed and emerging in one.

vacantly-visible

Hey everyone, thought I'd ask for some newbie general advice on the low-stakes daily thread. Thanks in advance for the wisdom. I'm in my mid 20s, in the USA, and still live at home with my parents, so expenses are currently very low. I've been working for 2 years and have a lot of money saved up. Enough for a healthy emergency fund + extra to begin investing. Just not exactly sure how to allocate it. I have zero debt, and I like to think at least *some* awareness of how lucky I am. My gross income is about 85k. I'm maxing my Roth IRA, and have recently adjusted my 401k and HSA contributions to the max while I can afford to do so, because I probably wouldn't be able to if I moved out tomorrow. I like the idea of using my money as a down payment for a house, but I haven't even lived on my own yet. I'm not really ready to buy. If it matters average rent in the area is probably $1500/mo and average home price likely $400k. As you can probably tell from the average costs of living, I live in a less expensive area than some do. The issue is I'm not sure if I'm going to stay here. I'm young and early in my career, so open to moving for the right opportunity. In fact my job has run its course, so even if it takes a long time I'm looking for another one. If I don't stay in my state, anywhere else I'd want to move is almost certainly more expensive. If I don't use this money for a house I'm also open to it being used for early retirement. Does it matter that I don't have my savings earmarked for a specific thing? Life just feels uncertain right now, all I know is I want it to be working for me in the meantime. As long as I am living at home, I don't need it yet. (There isn't a specific move-out plan or timeline.) I don't have a taxable brokerage account yet, should I just open one and dump everything in VTI/VXUS or FSKAX/FTIHX? All my retirement stuff happens to be with Fidelity, should I stick with them or open it at Vanguard or somewhere else? My Roth and 401k are in TDFs and I just started investing my HSA in 70/30 FSKAX/FTIHX.

Ok_Assignment4100

Yeah, gonna invest my parked money in Traditional IRA for FSKAX and FTIHX! And hope i make something from it since I haven’t been contributing much to it for awhile.

Ok_Assignment4100

Uncertainty. But, now, I won’t contribute to Traditional IRA anymore and focus fully on Roth IRA. I’m leaning just FSKAX and FTIHX for Traditional IRA (Same with Roth IRA).

Cruian

>After learning Roth IRA benefits (e.g., grow tax-free after paying taxes), Be aware that some people are better of with Traditional, due to how taxes get applied: Roth isn't always best: * https://www.gocurrycracker.com/roth-sucks/ * http://wantfi.com/skip-the-roth-401k.html * https://www.reddit.com/r/personalfinance/comments/10qwnrx/why_you_should_almost_never_contribute_to_a_roth/ * https://www.reddit.com/r/personalfinance/comments/z5hb8v/how_much_money_are_we_talking_about_losing_if_you/ixw89x5 >In this scenario, should I just invest into FXAIX (Fidelity’s S&P index fund) or FSKAX I'd put FSKAX as the better choice, but still think it needs to be paired with FTIHX or equivalent. >and hope for major capital gains? Why wouldn't you invest it?

BluAdmiral

Because I'm lazy and don't want to worry about rebalancing ever FDEWX. If I'm less lazy then I go FSKAX, FTIHX, FXNAX. 4 is too big of a number for my brain

Cruian

>Would adding bond (FTBFX) be a good investment right now? Or, once I've decided that my equity will be slashed to 50% or lower (via asset allocation) as I approach retirement? Bonds adjust risk level, determine when you want to start adjusting your risk level from 100% stock (many people actually can't handle it in their 20s really) and add from there. >So, in this slightly down market, I could just put in my full $35k toward FSKAX and FTIHX? Markets can change quickly. Don't wait to "buy the dip": https://rationalreminder.ca/podcast/144

Ok_Assignment4100

>Everything in there already and as close as you can safely afford towards the annual limit going forward. **Be sure to consider adding bonds or some other safer asset at some point.** Would adding bond (FTBFX) be a good investment right now? Or, once I've decided that my equity will be slashed to 50% or lower (via asset allocation) as I approach retirement? >As much as you can as soon as you can. So, in this slightly down market, I could just put in my full $35k toward FSKAX and FTIHX? What would be a moderately aggressive approach in this case?

andybmcc

There is a ton of overlap between FXAIX, FZROX, and VTI. REITs and SCHD are more for income, which you don't need right now. PAVE is a gamble with a big ER. I'm assuming you're at Fidelity. I'd just simplify with FSKAX and FTIHX. I like 80/20. You already started early, just put it in something rational and spend your energy on more important things.

Cruian

>Some want to go with the first option because it truly follows the S&P500 I believe S&P 500 gets over glorified. Treated like it is the best thing ever. The reality is it doesn't even have the best returns within the US long term. Personally, I don't see the point into breaking it up into more than FSKAX + FTIHX for most people. Only if you want to do something like factor tilting would splitting be necessary. >their earnings will still be good (But not as great compared to FXAIX). Long term S&P 500 had lower returns than mid & small caps (small being a potential compensated risk factor). Factor investing: • https://www.investopedia.com/terms/f/factor-investing.asp • https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) Mid & Small Caps beat S&P 500: https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=true&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&portfolioNames=true&portfolioName1=Large+Cap&portfolioName2=Mid+Cap&portfolioName3=Small+Cap&asset1=LargeCapBlend&allocation1_1=100&asset2=MidCapBlend&allocation2_2=100&asset3=SmallCapBlend&allocation3_3=100

vacantly-visible

In a Roth i don't think it matters because your money has already been taxed. FSKAX/FTIHX are mutual funds and VTI/VXUS are ETFs. I've read on other subs that ETFs may be more tax efficient, but again, in a tax-advantaged account it doesn't matter. Personally I invest in the Fidelity funds but I'm also a Fidelity customer. If you have Vanguard the Vanguard funds might be better. You should be able to buy all of them at any brokerage, but their own funds will probably have lower fees.

asking-money-qns

Large cap growth stocks have been on a rampage roughly since the great recession, driven primarily by big tech stocks - Google, Apple, Amazon, Facebook, etc. This is historically anomalous: over the past 150ish years of the history of capitalism, small cap value stocks tend to deliver the best returns on average, though it is not unusual to see prolonged periods of underperformance. Ultimately both of the two portfolios would be considered well-diversified and it would be hard to make a serious argument against either of them. But FSKAX + FTIHX has greater exposure to types of companies that have done better historically, so that's closer to how I personally invest my money.

andybmcc

This. I'm curious to see how FSPSX and FTIHX perform in the future. I think it's probably wise to have some EM exposure. It may be significant.

yogi2350

Investing in a low-cost index fund like VOO (Vanguard S&P 500 ETF) is a solid choice, especially for long-term growth. It provides exposure to a diverse range of large-cap U.S. stocks and historically has shown strong performance. Additionally, Fidelity offers its own equivalent index fund called FXAIX (Fidelity 500 Index Fund), which is also a low-cost option worth considering. Diversification is key, so your partner might also want to consider adding a total U.S. stock market fund and an international stock market fund to the mix. Fidelity offers index funds like FSKAX (Fidelity Total Market Index Fund) for U.S. total market exposure and FTIHX (Fidelity Total International Index Fund) for international market exposure. Generally, for a long-term investment horizon, a diversified portfolio of low-cost index funds representing different segments of the market can be a prudent strategy.

tyrusthomas11

Let’s look at Fidelity’s total international index fund, FTIHX. Since inception in June 2016, it has returned 27.64%. Fidelity’s US total market index fund, FSKAX, is up 100% going back to June 2016 and is up 260% since inception in 2011. Really a no brainer that the US is the superior option here. These good runs that you speak of don’t hold a candle to FSKAX/VTI/etc.

MONGSTRADAMUS

FTIHX already holds emerging markets so if you want to overweight emerging thats fine I guess. What I don't like FTEMX 1.12 er though.FPADX, Fidelitys emerging market index, is .075 much better option, or You could use Vanguard, Ishares, or Schwab cheaper emerging markets etf. I feel like total market is already pretty growth tilted already so if I were to tilt anywhere it would be probably to small cap value or anything value. Value historically has out performed growth but who knows what will happen in the future. Nobody really knows if last 10-15 years is going to be how stock market will be going forward.

Ok_Assignment4100

What do you think of Growth (FSPGX) and Total Emerging Markets (FTEMX) added to the portfolio of FSKAX and FTIHX?

MONGSTRADAMUS

SP500 I guess has outperformed total market recently may be the reasoning , but I rather have diversification of fskax or fzrox for me personally. The typical boglehead porftolio is FSKAX/FZROX for US, FTIHX for international , and fxnax for bonds, but you don't want bonds so probably not important. There is FZILX for international but its a large cap only so you would need to supplement with something like VSS.

Ok_Assignment4100

I was thinking FSKAX and FTIHX for equities. Anything else that would complement these two?

andybmcc

Foreign taxes will be withheld as normal, but you won't get the tax credit because there are no US taxes to pay in a Roth account. As far as what to hold, I hold a total US, total international, and a small cap value fund in my Roth IRA. (FSKAX, FTIHX, AVUV). I think that's a solid plan if you're OK watching some stretches of SCV underperformance.

rnrsimon12

It sounds like you've chosen a diversified trio of funds covering U.S. equities, international equities, and bonds. Diversification, as you probably know, is key to managing risk. FSKAX provides broad exposure to the U.S. stock market, which has historically been a strong performer over the long term. FTIHX offers international diversification, which can be beneficial to hedge against any potential U.S. market downturns and to tap into growth in emerging markets and other economies. FTBFX introduces bonds into your portfolio, which can provide stability and act as a buffer during stock market volatility. For a long-term retirement portfolio, this mix can be a solid foundation. However, the specific allocation between these funds should be based on your risk tolerance, time horizon, and financial goals. As always, it's wise to consult with a financial advisor to tailor your investments to your unique situation. Best of luck

Ok_Assignment4100

More I look at it, FSKAX & FTIHX is what I'll invest in for both Roth IRA and Traditional IRA. Lastly, when should the Total Bond Market Index Fund (FTBFX) come into play? Should I invest into now at low allocation and become more conservative and put more towards it as retirement age nears?

Cruian

FTIHX/FZILX already cover both developed and emerging. FPADX would be the one to compliment FSPSX.

Cruian

>rather than a "total market" fund, which normally doesn't include much, if any International exposure You'd need a "total world" fund to cover ex-US. >International - FSPSX This covers developed markets only, no emerging markets. Is that intentional? If not, consider FZILX or FTIHX instead.

Ok_Assignment4100

Nevermind, I just saw FTIHX 2023 year's performance (So far) and it's been up and down (But, which index fund and ETF is, right?). At an expense ratio at 0.06%, that's decent?

Ctnnb1-Dad

FTIHX is Fidelity’s mutual fund equivalent to VXUS. If you’re at fidelity I’d probably hold FSKAX and FTIHX or FZROX and FZILX. Either of those would get you access to the total market.

Ok_Assignment4100

I was thinking of going with FSKAX since the auto investment. I'm trying to gain exposure outside the US market, so I'm looking at Fidelity's Total International Market Index Fund (FTIHX). But, it doesn't look to be in good shape right now. Any suggestions to other International index fund or ETF to accompany FSKAX?