FXAIX

Covah88

FXAIX and chill. Enjoy your million dollars in 2055.

Cruian

Dividends aren't free money, the share price drops by the distribution amount. A decent chunk of SCHD is in FXAIX already, essentially all of it is in FZROX or FSKAX. Going global can both help increase returns and reduce volatility in the long run. FTIHX, FZILX, or FSGGX can provide international exposure for a few examples. Expanding into the US extended market can also be beneficial (US total market style funds exist, such as the FSKAX or FZROX I mentioned above).

Your_submissive_doll

Why invest slowly? Lump sum into CDs for 5% guaranteed or FXAIX and let it double every 7 years so he can retire a multi millionaire in his 60s

the_leviathan711

> Which is unlikely to happen in the near term (in my opinion). Yeah, I mean... who knows. Investors today sure seem excited about the possibility. But interest rates staying high is *also* good for a bond fund like FUAMX because it means the yield stays high. So right now the yield is just under 5% and the longer interest rates stay where they are the higher it goes. > In my opinion she would be better off putting these funds in FXAIX and leaving it alone. OP is very clear that she is risk averse. 100% FXAIX is an extremely aggressive portfolio that is not for someone who is risk averse. It's true that over the long term 100% FXAIX is more likely to produce better returns than a mix of stocks and bonds, but that doesn't mean it's the right choice for this person. > Bonds are a dumpster fire right now. Which means they're on sale.

FluffyIrritation

> if the fed drops interest rates. Which is unlikely to happen in the near term (in my opinion). In my opinion she would be better off putting these funds in FXAIX and leaving it alone. Bonds are a dumpster fire right now.

Uatatoka

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

glumpoodle

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.

deweyjuice

Good luck. You might have a communication issue when the market corrects one day. If she is nervous during the good times, she probably will have a bad reaction to a pullback or recession. I don't know your age, but just FXAIX might be good enough while you are young.

jk147

If your wife is young, put everything into FXAIX and just let it sit. Seeing my investments my wife recently started her own retirement fund, I have her put in all on VOO. She doesn't even have that many years before retirement. But it is better than nothing.

the_leviathan711

> 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.

nauticalmile

What? Look at FXAIX…. Top three holdings (Microsoft - 7.07%, Apple - 5.63%, Nvidia - 5.05%) are each more than 5% of fund assets.

megatronus8010

I have been using Fidelity Go for the past year with a recurring deposit of 400$ per month (200 biweekly). It has 0 fee until you hit 25000$ and then 0.25% after that. I started using it because of a 100$ promo they were running just to see how it works. I choose the aggressive strategy which as of today has me as 60% domestic stocks (their version of sp500) 25% international stocks FXAIX 12% Bonds 3% Small cap Throughout the year I have seen this ratio change slightly but not much. At one point I had 10% Small cap and 20% bonds. I have not yet had my portfolio rebalanced( nothing has been sold and invested again). To change the ratio if deemed necessary by robo advisor is done by changing the ratio of next cycle of investment.

edtitan

FXAIX 30%

4pooling

FXAIX, since it's the cheapest offering in my 401k.

AlexInMerion

Standard portfolio is 35% VOO/FXAIX (that's my target % for S&P trackers). Largest single stock holding in that portfolio is NVDA (8%). 401(k) is 75% Fidelity Contrafund. Roth IRA is mainly AMZN.

Revolutionary-Web673

I do FXAIX for my Roth..my 401k is a mix

Cruian

>S&P YTD return is not stellar Morningstar is showing a +9.83% YTD for FXAIX, in less than half the year. If this pace continues, that's pretty respectable. >Often wait for 1 or a few bad red days. Keep in mind -1% x2 is enough worth waiting for. Not if we go several days of +1% before those -1% days.

Wild_Character_4269

Note that VOO you can trade through out the day while FXAIX as a Mutual fund can not be sold until the end of the trading period .. that is one positive to an ETF as if you see a sudden crash coming you might be able to preserve some capitol. However in the case of VOO the S&P is not going to take that big of a dive overall and it will probably recover within a month ... For other ETFs though this might be important

Wild_Character_4269

Well one is an ETF and the other is a Mutual Fund. So there are some rules around it that are different but yes they are basically the same. The nice thing for me is that the broker I use does not allow for fractional shares of ETFs but does for Mutual Funds and the expense ratio of FXAIX is slightly less. However there is not really any true difference as these are both simple Index tracking funds in the S&P

UKFAN3108

FXAIX is essentially the same, it tracks the S&P 500 as well. It also has a slightly lower expense ratio 0.015% vs VOO's 0.03% When people mention VOO its really just saying S&P 500 index fund on whichever platform you use.

ADynes

If we end green again today I'm selling off all my broad S&P etfs (VOO/SPY/FXAIX/etc) and looking for a pullback next week with a re-entry point. Seems a little suspect right now but not enough confidence for puts.

jsin_k

There is no "best" - a Roth IRA is just a different type of brokerage account that you can open at Fidelity. Just like with a "regular" or "taxable brokerage" account, you move money in, then invest it in something. The difference between the account types is the IRS rules around contributions and taxes. Like already mentioned, the Roth gives you years of gains without paying any taxes on those gains. I personally have my Roth IRA in four funds: * FXAIX - the S&P500 * QQQM - the top 100 in the NASDAQ * SCHD - A collection of dividend paying companies * DGRO - A (somewhat) different collection of dividend payers Everyone's mix is different, but if you're investing with some basic smarts you'll be way ahead.

choya_is_here

I have fidelity. My checking, brokerage and retirement IRA all under fidelity. No need for multiple external accounts. Invest in the fidelity SP500 fund FXAIX. you can do weekly/monthly dollar cost averaging or lump sum. At your age no reason to invest in bonds or CDs. Keep 6 months expenses in cash/checking account

Fantastic_Mention261

Did you open a Roth IRA or a taxable brokerage account? Consider opening a Roth with Fidelity and putting your $7k max in it if you haven’t already maxed out an IRA for the year. You can put your Roth in VOO/FXAIX or you can diversify. It doesn’t mean you can’t also have a taxable account.

itisj

first of all you should start considering putting money into retirement account like IRA, try max out the annual contribution which in this case you can do the 7k max roth IRA and put it into mutual fund like FXAIX or a SP500 ETF like VOO you can open a brokerage account in schwab or fidelity (doesn't matter which one) for the rest go for short term T-bills or money market for a steady 5-5.5% return save up about 6 months worth of expenses as emergency fund in a HYSA like Sofi or Wealthfront and you are solid

Fantastic_Mention261

You can buy VOO or FXAIX on fidelity. There’s no reason open a Robin Hood account for that. You can have VOO anywhere.

ImTooOldForSchool

FXAIX and chill, go for a broad market index to keep yourself diversified

sellputsthencalls

Pardon me for not replying sooner. I began my sellputsthencalls strategy upon retirement from Fidelity in 2017. With about 85-90% of my IRA. Initially versus 4 ETFs (DIA, EFA, EEM & TLT), then versus XLE, & for the last 2 years versus SPY. Exclusively using monthlies until 2 months ago when I began weeklies. I'd say the returns are consistent. By design, option selling should generally perform versus the underlying's buy & hold, as follows: option selling should do well but underperform the underlying in a thru-the-roof market; outperform a modestly-up, flat & modestly-down market; & outperform an into-the-tank market by losing less than the underlying. Since using weeklies, I've generated premium yield of about 9% annualized, but I also see appreciation & depreciation because of SPY pricing. I want to select strike prices with a 20% chance of assignment, but with SPY being well below my put assignment strike price, I've selected much higher assignment chances for my covered call strike prices. Using monthly statements, I compare my OSS (option selling strategy) to a small amount of FXAIX (S&P 500) that I hold. An example of performance: month ending 3/31/24 -- FXAIX +3.2%, OSS +2.7%. month ending 4/30/24 -- FXAIX -4.2%, OSS -1.4%. 2 months, 2/29/24 to 4/30/24 -- FXAIX -1.1% (-6.5% annualized), OSS +1.3% (+7.7% ann.) YTD thru 4/30/24 -- FXAIX +5.9% (17.7% ann.), OSS +4.2% (+12.6% ann.)

throwawayinvestacct

First question >We each have $30k in our 401k . . . Everything is invested in FXAIX here. >We have $50k in our IRAs, combined . . . All of which is invested in SWPPX. >We have $100k invested in VOO. I take it the $100k VOO is just in a brokerage, separate from the 401k/IRA? For a start, any reason you don't up the 401k/IRA to use up the $1500/month and take advantage of that tax-advantaged space? It's less flexible than a brokerage, but tax-advantaged! In any event... For 401k, you each make 75k. Sounds like you see total contributions of 21% (15+6 match) and she gets 6% (4+2 match). [(75*.21)+(75*.06)] = ~$20.25k/year (~$1687.50/month). Gonna call that ***$1700/month 401k*** for simplicity. IRAs you don't specify a contribution figure, but at $50k total ($25k apiece) I'm guessing you're not maxing out. I'm gonna call that $3k/year total, or ***$250/month IRA***. Finally, $1500/month for brokerage. In total, that's ~$3450/month or ~$41.4k a year. Very nice on $150k gross! S&P500 has seen long-term historical returns of 10%. 60k (2 401ks, 30k each) + 50k + 100k = $210k to start. Age 37, shooting for age 62 retirement is 25 years. $210k + 3450/month for 25 years at 10%, [compounding daily](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator) is ~$7.2m. Realistically, lets account for 3% inflation (so you're talking in "current" dollars, at 7% that's $4m. Finally, taking the old 4% rule (that, at least looking to historical data, you could withdraw 3-4% from a basic portfolio over the long-term without drawing it to 0), 3% is $120k/year, 4% is $160k. Looks like your current saving trajectory is generally on track to yield (before even accounting for SS) roughly your current income levels in retirement. >We do realize we probably need much more diversification and greatly appreciate any and all input. As for diversity... Yeah, FXAIX is S&P500, SWPPX is S&P500, and VOO is... S&P500. I don't know your other 401k options, but the other accounts it's your choice, so I'd definitely consider diversification. At the very least a US total market fund (to capture smaller companies). Beyond that, I myself do the classic [three-fund portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) type portfolio (US stock, int'l stock, bonds, each in an index fund) but up to you.

Plain_icecream

Since I have more FXAIX shares than VOO and they track the same index, should I start focusing on one by only investing in FXAIX? Or is one slightly better than the other?

buffalochikn17

VTI and chill. You have a bit of overlap (VOO and FXAIX track the same index). Cheers.

the_leviathan711

> Should I max out my Roth IRA or look into investing into S&P 500 and letting it grow? This question doesn't make sense. An IRA is a type of account, FXAIX is an investment. You buy investments in accounts. The question you're asking is something akin to "should I buy food? or should I buy a refrigerator?" Opening a Roth IRA is a good idea, and then you can buy mutual funds like FXAIX (or whatever else you want) in it.

BudgetingDad

Hello Everyone, My wife and I are new to the investment scene and are looking for some advice/guidance/direction with our long-term investments and where we can improve. We are both 37 years old and our target retirement age is 62, or sooner hopefully. Both of our gross incomes are $75k each. We each have $30k in our 401k. I just increased my contribution to 15% of my salary and my employer matches 100% up to 6%. My wife contributes 4% of her salary and her employer matches 50% up to 4%. Everything is invested in FXAIX here. We have $50k in our IRAs, combined. All of which is invested in SWPPX. We have $100k invested in VOO. We also just set up automatic investing to purchase $1,500 worth of SWPPX monthly moving forward as well. $1,500 a month is what we are comfortable investing at this time as we have 2 kids. Our home and cars are paid off. We have $100k in checking/savings which we want to remain untouched. We do realize we probably need much more diversification and greatly appreciate any and all input.

the_leviathan711

> 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.

Ok_Assignment4100

Yes, Both 401k (with 5% employer match) and IRAs are always fully contributed to max limit each year. 401k: TDF Vanguard 2050 Traditional: FXAIX Roth: FSKAX & FTIHX In this case, for the taxable account: Will do long-term capital gains (Buy & Hold) for VOO and buy individual stocks to hold for long-term capital gains (And tax-loss harvesting). Sounds like a solid plan?

Particular_Mouse_600

FXAIX from fidelity looked really good

itinerant17

start buying other things. stop buying AAPL shares. if you want, sell AAPL shares and use proceeds to buy other things. if selling, be mindful of your company blackout periods. don't feel compelled to do it all at once. you sound anxious. it's best to keep a cool head and proceed rationally. plan it out and then act on it. for stopping buying AAPL shares: turn off dividend reinvesting if doing ESPP, just sell immediately and pocket the difference if doing stocks options/RSUs, could keep the new lot and sell an older lot (for long term gains instead of short term). or just cashless exercise. when buying other things: diversify into an sp500 index fund. doesn't really matter which brokerage, feel free to pick based on convenience. don't have to optimize for expense ratio but it can make a difference. you can set index funds to automatically reinvest dividends, vs an ETF which you've have to manually purchase. i like fidelity due to cash auto sweeping into a money market account, lower ERs, buying fractional shares, and their customer service (they have physical offices if needed). so i have fidelity and FXAIX. if selling: you could also try selling covered calls on your AAPL shares and collecting the premium. it's another vehicle to possibly make money on your stockpile of shares. mindset wise it's basically like setting a limit order to sell. just be mindful of possible company catalysts (like WWDC) as the stock price can fluctuate a lot during those times.

ADynes

Handful of AARY options that are almost worthless but otherwise everything is in ETFs for this beautiful green (QQQM, IWM, and FXAIX mainly) and 130 shares of ADEA for earnings next week.

FEMA_Camp_Survivor

FXAIX. See r/fidelity too. The mods work for Fidelity and are extremely helpful and responsive for questions like these.

AICHEngineer

Is the s&p fund FXAIX?

AICHEngineer

Oh, she's at fidelity (FXAIX is 0.015 ER). Does she have access to FTIHX?

ADynes

Put it in VTI/QQQM/FXAIX/IWM and delete the app.

Savik519

I'd sell the RSUs, you already have enough riding on the success of your job/company (being sole income). Invest the money in a regular brokerage account in something like VOO. Find how much you'd need for 6mo of living expenses, put that in a high yield savings account. When are you trying to buy a house? If in the next 2yrs then put that money in a high yield savings account or a money market fund. I'd keep <10% of your total portfolio in individual stocks and instead shift it toward low cost index options like VOO/VTI, FXAIX. Contribute to your 401k as much as you can to get employee match as well as lower your current tax obligation. If you have additional money to invest you can do a backdoor Roth IRA contribution which is also a great idea despite your income. Search for articles on how to do that.

Ordinary-Push-3202

Why would you prefer FXAIX over VOO if they track the same thing

TyrionsSpeechwriter

If you are with Fidelity then why VOO instead of FXAIX?

supmfker

I'm on Fidelity and currently have FZILX, FZIPX, and FZROX. My portfolio has a 1-year cumulative pre-tax return of 21.43% vs the S&P return of 24.62% according to the app. Thinking of doing FXAIX, QQQM, and something international maybe for this year. Please give some advice on if I should do QQQM instead of TQQQ or what else in my Roth IRA. I'm 23

AICHEngineer

You should regard all of your assets as one portfolio. The sum of its parts play together under the markowitz portfolio framework to give you an overall risk / expected return characteristic. Some accounts are better for different things, however. My 401k is limited in its options, so I get a lot of my international exposure in my 401k. It's basically 50/50 FXAIX/FTIHX. In my Roth IRA, because rebalancing is free, I engage in the "hedgefundie's excellent adventure" portfolio as of very recently in order to access leveraged beta exposure since I am very young. Rebalancing is every three months between UPRO and TMF to reduce the worst case drawback periods while still benefitting from leveraged exposure to equities and long term treasuries. This is pursuant to the works of Ayers and Nalebuff about time diversification of equity exposure. See the below paper if interested. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1687272. I also invest in small cap value funds in my IRA and brokerage, since I cannot do so in my 401k, again that's why my 401k serves as a traditional core portfolio of diversified equities with an overweight to international since my IRA is largely leveraged S&P500 exposure and small cap value. Avantis funds AVUV, AVDV, AVES for systematic factor tilt exposure.

AICHEngineer

The S&p500 is the 500 largest US companies by market capitalization. Market cap is shares x share value. Bigger market cap means that company has larger cash flows in the future. All the funds that tracks this index perform nearly identically, so you want the one with the best expense ratio, which is the cost the fund charges (by taking a little of everyone's invested money) for the work of rebalancing the portfolio annually and handling inflows and outflows. SPLG is 0.02 ER ($2 for every $10,000 invested, excellently cheap). Most popular ETF is probably VOO, but SPLG is just better. FXAIX is slightly cheaper at 0.015 ER, it's a mutual fund tho. I hold FXAIX in my 401k. Don't be fooled by stock pickers and such. Most of the time, the market is efficient and drives up the price of stocks like Costco or Nvidia or Apple or whatever when they're expected future cash flows are high. If you pay an expensive price for a wonderful company, that still may be a lackluster investment. Great company does not equal great investment. Great investments are when you get more return for equal risk, or equal return for less risk.

McKnuckle_Brewery

The allocation is 80/20 stocks to cash. Half the stock is split between FXAIX and FSKAX, Fidelity's S&P 500 and Total U.S. Stock Market index funds. The other half is in two growth funds, and these will be the most volatile - prone to large swings. Since you need this money in a year and nobody knows what the market will do, it's probably time to start moving a portion of the more aggressive funds into conservative ones. Perhaps 50% in the Total Market portfolio and the rest in their Conservative portfolio. For some people keeping half in stock would still be too aggressive, but it fits with my comfort level, and I don't want to miss out on some growth. College does last 4 years after all. I'm currently paying for college and my Fidelity 529s are about 30% S&P 500, 50% cash, and 20% in a variety of bond funds.

Fun_Grapefruit_3416

Buy FSKAX and/or FXAIX at Fidelity :)

SnS2500

You are misunderstanding how a 401k works. You don't need to liquidate the fund. Just sell the target date fund in the 401k and buy in the 401k whatever you want, like whatever the VOO equivalent is, something like FXAIX.

conradical30

Why do you say that? We’ve got it too, and my company covers all managerial fees (if that’s what sucks about them, I never see it) and they offer FXAIX at like a 0.015% expense ratio which is what I throw everything at.

h2o-bbq-usd-technerd

Yes. My brokerage currently consists of 1,150 shares of MSFT and 67 shares of FXAIX. It’s going to help bridge the gap for early retirement.

BiggyShake

Leave it in fidelity and invest it in FXAIX (fidelity S&P 500 fund)

ImTooOldForSchool

Keep pumping FXAIX and let it ride

pacific_crick

I misread your original post that you were 60 now. If you are not going to touch it for almost 20 years then I would put 95% of the funds in a fund like VTI or FXAIX that are index based funds that follow the market. Generally the market is going to go up over that time.

Sea_End_1893

I was 33 when I figured out "my portfolio" and yeah it's pretty much 90% S&P 500 plus some dividend earners I figure, any company worth it will ether become part of the S&P 500 or be devoured and bought out by a company in the S&P 500, so in the end, it doesn't matter. Whether you choose VOO, IVV, FXAIX, whatever your benchmark is, the 500 is where it's at.

pacific_crick

The advice I would give is to focus on your education first. Education allow you to earn more and therefore save more towards retirement. In your case I would put it in a high yield savings account or perhaps bonds. You want that money to grow to allow you to pay for books and tuition in the near future. If you really wanted to be aggressive and were willing to risk some of your capital looking at putting half your money in an index fund like FXAIX or VTI but know that it is possible that your investment can go down (or up) short term. If you put your money in a HYSA you would net about $1400 at current interest rates.

andybmcc

I'm of the opinion that a Roth IRA can be slightly more aggressive. FZROX and FZILX is great, so is FSKAX and FTIHX as a base. As for the 401k, my complaint is that it goes way too conservative around retirement. That's a bit out for you, so either route would be fine for now. If you go FXAIX and FSPSX, you'll have to figure out your own glidepath into fixed income assets at some point.

SnS2500

FXAIX is the S&P500, the equivalent of the ETF VOO. It is "the market" that is what most people underperform when they pick other stocks. Start with that. Then, if someday you personally have a compelling reason (which as of now it appears you don't), put some or all of the money into something else, not because any randos on the Internet told you to.

Big-Grip

I've been looking at S&P 500 index funds such as FNILX, VOO, SPY, IVV, SWPPX, VFIAX, and FXAIX. I've also been looking at world stock ETFs like VT. At the core of my misunderstanding is what is the difference between individual S&P 500 indexes? Aside from different brokers and slightly different expense ratios. For example: As I write this, FNILX is $17.77 (0 exp ratio), and VOO is $462.20 (.03 exp ratio). They both have similar, if not identical, holdings yet are drastically different prices. Expense ratios aside, is FNILX a better buy because it has a much lower cost "per share" or do the prices here not matter because we're only looking for % increase as a goal?Is it even logical to think "I should buy FNILX because it's roughly $17 and may grow to $500 versus buying VOO because it's already almost $500 and is probably near its ceiling for growth?" Also, why the dramatic price differences for the same holdings?

Charming_Sport_6197

Let me tell you some advice I got from my mom, who stopped working in 1970 and I am STILL living off her stocks and bonds she left me. It works. Decide how much you want to buy. Then buy 1/2 that. Wait. Same goes if you sell. Sell 1/2 and wait. Now my advice I added to this formula. Never let your portfolio get less than 40% stocks. Never let it get above 80% stocks. Keep 50% in a large cap ETF like FIDELITY Blue Chip Growth, or FXAIX, and 50% in a small cap MUTUAL fund. I did quite well with this formula, which limits your downside a lot, but your upside a little.

jcwils42

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

kiwimancy

There's not much benefit. Other slices of the equity market will be highly correlated to US large caps, so there's not a lot of diversification benefit to them. It shouldn't be too hard to find funds which outperformed FXAIX. Just sort by 10 year returns. But that's not necessarily a reliable way to find funds which will outperform in the future.

Ping-A-Ling-

Honest question of "Why?" Why bother having any other holdings than an S&P Index fund equivalent? I have spent weeks playing with every software program that compares and rates findings has FXAIX (I use Fidelity as a brokerage) outpacing every single other fund; and quite significantly in a lot of cases. International. Small cap. Mid cap. Value (obviously), other growth options. Beats them all. So really, why diversify outside of S&P Index equivalent funds? Even three fund portfolios? I was contemplating doing a very small amount of FBTC just for fun, but why? 98% of all my holdings in my 403b, HSA, Roth IRA, brokerage, and 529 are FXAIX. I've been thinking, "...maybe I need to get into other holdings." But honestly, why? Is there something I'm missing? I see nothing to sway me from this line of thinking. Am I wrong. Please help me understand what would qualify a change. **Other than allocation changes between equities and bonds as I get older**

ServerTechie

I like to pair mid-cap with S&P 500. FSLSX is an active managed mid-cap value fund that has outperformed FMSDX and FSMAX the past 3 years, the only downside is the higher expense ratio. But overall I like this fund and contribute to it every week in addition to FXAIX. [FSLSX comparison](https://fundresearch.fidelity.com/fund-screener/results/compare/snapshot/averageAnnualReturnsYear3/desc/1?order=&tickers=FSMDX%2CFSLSX%2CFSMAX)

donnie_d4nko

83% FXAIX 8% FSMDX 9% FSSNX got this from [https://www.bogleheads.org/wiki/Approximating\_total\_stock\_market](https://www.bogleheads.org/wiki/Approximating_total_stock_market)

sabeche

I have a time horizon of 30+ years and my roth ira is 50% FXAIX and 17.5% SCHD. The last 32.5% is split between vanguard foreign market and small/mid/large cap growth & value ETFs. My taxable brokerage account has some more aggressive positions with holdings in individual companies and sectors I think could outperform the market over the next 5-10 years. I don't day trade or buy anything I don't plan on selling for at least a year.

Nuclear_N

Do the returns beat FXAIX? If not you would be better at Fidelity. Just not know what they charge is a red flag that you are not engaged in your own investments

Fantastic_Mention261

There is some recency bias to this that may or may not play out the same way in the next 25 years. It’s a good idea to have some non-US stocks and a small amount of long term bonds. I know there are a lot of people on Reddit who don’t agree with that, but it’s probably not a good idea to put *all* your money in FXAIX/VOO. You can put 60% of your portfolio in one of those funds and a chunk in an international stock index, and a very small chunk in a bond index and minimize your risk a lot. A three-portfolio approach is also pretty simple. It’s worth pointing out that there have been years-long stretches in which non-US stocks outperform the S&P 500. An international stock index can work as a hedge against VOO and sometimes yields better results.

PM_ME_UR_VSKA_EXPLOD

FSMAX covers the small and mid cap in the US, and it only has a 0.035% expense ratio. It pairs well with FXAIX.

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.

JeffB1517

FXAIX is USA large cap with a growth tilt. You want non-USA, value tilt, small tilt. Something like AVDV / AVDVX (since you like mutual funds) would pair well. VOO, VTI... wouldn't do anything.

Biggiesmalls_____

Hmmm ok. Well it won’t matter where you invest $30 for the month of May. Do you plan on doing further investing….? You say you are young, how young? What are your goals? I wouldn’t worry a while about investing $1 per day. I would just take $30 and invest it into a mutual fund like FXAIX in a Roth IRA and add to it as frequently as possible for as long as possible. I would get off Robinhood and open an account with Fidelity. Open a Roth IRA and put the $30 in one shot to FXAIX or VOO and keep doing that. Once you start learning and figuring things out start to diversify and do other things. But yeah there’s no need to spend $1 per day.

ADynes

$3k in settled cash to buy some dips tomorrow. I'll probably dump it all into VTI or FXAIX and wait for a recovery. J/K I'll do something stupid and lose it as is tradition.

77CrossxX

Hello, I'm a new investor and I have a few question? For starters, I opened a brokerage account with Fidelity and I'm looking to earn passive income. Currently I have the following etf/stocks: 1.Voo 2. VIG 3.VXUS 4.TSM 5.FXAIX 6. AMZN I feel like I'm not diversified because my portfolio is weighted mostly for the technology sector. Should I sell some to invest in other sectors? Am I owning too many etfs? I am thinking about purchasing ETFs for real estate to help diversify. Is that a good idea? All advice are welcome.

CaptainShoddy5330

You should check if there is a large cap growth index fund offered and split between FXAIX and that.

ServerTechie

DCAing every week into my Roth with FXAIX (S&P index so same thing). I do this in addition to a little mid-cap value, some international, and a touch of bond.

Ty-Knight-Composer

I am new to investing. I opened my Roth IRA in March and have contributed the maximum for 2023 and 2024. My time horizon is 20 years. My wife and I both have very good and generous pensions (75% of our top 3 earning years, +3% for each additional year we work). I feel somewhat comfortable with risk given our pensions. Is the following allocation any good? I’ve seen people say not to get into semiconductors because it’s already priced in, and not to chase previous gains - but I’ve never invested before so I am establishing my investment strategy, portfolio, and allocation brand new. I’m not chasing previous gains and do believe in what I understand to be the current and future value of semiconductor technology. I’ve read that adding scv to a broad portfolio based on something like the S&P500 can help provide additional returns above and beyond just putting everything into the S&P500. What are your thoughts? FXAIX: 80% AVUV: 10% SMH: 10%

DC8008008

100% FXAIX is fine for someone your age IMO. But if you wanted to throw in some International you can do 80% FXAIX and 20% FZILX or FSPSX. I wouldn't worry about bonds for 20 years or so. Just my opinion.

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?

Dizzybro

100% into FXAIX

Positive-Fox2248

I’m new to investing. I’m 39 years old, I have two retirement plans 457 (balance 32k) and 403b (9k). I started contributing just recently to my retirement. I contribute about $900 every month to both. My money sit in Fidelity Freedom 2050 Fund Class K FNSBX. I was recommended to move my funds to FXAIX so I get higher rate of return. I know I’m behind so any advice would be helpful. I’m planning to retire in 2050 or later.

tigerclawripu

FXAIX is one of the best Also look into ONEQ , FTEC , and FSKAX. All low expense ratio and follow big companies.

LetsFigureitOutNow

Thank you. I did not want to pay a fee for VOO, so I was hoping FXAIX would be basically the same! Thanks.

LetsFigureitOutNow

I have a question regrading Index funds, I use Fidelity and I am looking for a overall S&P 500 fund, would FXAIX be the same as VOO ?

Fearless_Law4324

I am extremely new to investing. I have about $2,000 I'm willing to invest. I opened a brokerage account with Schwab and bought 2 shares of VOO. That cost me about $950ish. I'm about to take the rest and put it into FXAIX as others seem to highly recommend. Not sure if I should be doing anything else but I don't want to pick individual stocks until I'm way more comfortable with all of this. Any recommendations are very much welcome.

fuckaliscious

Buy the inexpensive, diversified ETFs like FXAIX. IF you want to speculate in individual stocks, you have to be so much better at investing, getting the timing of buys and sells correct, keep individual stocks to less than 10% of your net worth is my recommendation. Just look at Apple, up 10% in the last 12 months. Meanwhile, FXAIX is up 26% over the same time frame. McDonalds is down 4% over the last 12 months. Which you want to be? Up 26% or only up 10% or even down 4% buying McDs. Given the stocks you picked, it's better to go with diversified ETFs.

packetheavy

FXAIX is Fidelity's fund that tracks the S&P 500, it's a great fund that owns parts of all the big US companies the you listed, it also has a very low expense ratio, I would (and do) consider it a great addition to a the growth portion of your portfolio.

CelticsWin7

No you didn't screw up. I have a 401k, Roth IRA, HSA, and Taxable brokerage account. There's different rules for different accounts are far as when you can take the money out and if you'll be taxed or not, but for the most part you can basically invest in anything within those account. Except for 401k, they are limited, but FXAIX is a great choice.

Aspergers_R_Us87

Would I have to sell all my FXAIX stocks than reinvest it back into a new brokerage called Ira?

MandamusMan

If you’re already putting 26% of your income towards retirement, there’s nothing wrong with saving more in a taxable brokerage. A lot of financial gurus would say to max out a Roth IRA or pre-tax IRA for the tax advantages, but you are right, you wouldn’t be able to touch them without penalty for a few decades. I’d also suggest making sure you have 3-6 months of expenses saved in a high yield savings account as cash, as well, in case something comes up you need cash for when the market is down, so you don’t have to lock in your FXAIX losses to get money

kerapang

Tax fine on what? Income tax on your gains in FXAIX? How much did you make that 20% income tax would be a huge tax fine?

kerapang

Why would you have screwed up? It’s not like an irreversible decision. You can also open a Roth on Fidelity and sell your FXAIX and transfer it to your Roth? I’m not sure I’m following the concern here.

tonyMEGAphone

You know I went to check on mine to see what I had and I've been in the FXAIX w/ half my port for the last 20 years. Just adjusted my dividends back in. Had another huge chunk just sitting in the money market not making me anything. 

MindlessM24

How would you feel taking that money and putting that money into a fire? Would it really impact your life if it was all gone or would it not impact the way you live at all? Regardless, do not pick MEME stocks. Pick stocks that are actually profitable. If you wouldn't miss it, I would personally put it in a semi conductor fund (FSELX). If you WOULD miss it, I would stick it in FXAIX and keep adding small amounts monthly through auto investing.

Aggravating-Ad-6460

Not sure how old you are but definitely start putting something back. I wish I had done it sooner. I am 42 so I am trying to play catch up and learn as much as possible. I think my anxiety has cooled down some and I am just going to start automatically investing a set amount weekly. If I have larger amounts to throw in at times I may try to buy in on an ETF where I can determine the value when I buy in. As of now I am all in on FXAIX but I did add FZILX today to diversify some.

ADynes

Look at VOO or QQQ or FXAIX 5 year returns. All 90% - 100% or 20% yearly on average. Best you're getting in bonds or a hysa is maybe 5%

SnS2500

> in theory would give me more dividend payout. No, they give you exactly the same. Five $20 bills is the same as one $100 bill. VOO is clearly superior in a taxable account, but even in a non-taxable account there is no reason to choose FXAIX.