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tony

Are No Fee Fidelity Funds Really a Good Deal?

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Obviously this has been in the news .Since fees  are a  BIG DEAL here  is  a take on this latest no fee Fidelity move.  Actually back in April Fidelity introduced The Fidelity Flex  funds, which were first filed last year,  also have expense ratios of zero. But we find out later that they  are available in only certain fee-based managed accounts offered by Fidelity. Not saying thats whats happening here but keep your antennas up about all these changes coming..

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 Until we have some evidence of performance from these funds, I think most investors would do just fine to continue investing in the existing low-cost funds out there. Furthermore, this first foray into no-fee funds will probably be followed by more options from competitors. 

https://www.fool.com/investing/2018/08/05/are-fidelitys-zero-fee-index-funds-really-a-good-d.aspx

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Yes, fees are a big deal, but investment fees have been low across the board for over a decade now. If people want to move money to Fidelity, that's fine. But to beat up on Vanguard because they charge a few basis points more than fidelity is ridiculous. Let's not forget the many fiduciary financial advisors charge 1.0% AUM or more. Now the AUM fee is a fee to be really obsessed about. 

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10 minutes ago, sschullo said:

But to beat up on Vanguard because they charge a few basis points more than fidelity is ridiculous.

I agree but I don't pick up people beating up on Vanguard but maybe that is happening on Boglehead? I haven't checked. In my opinion this is a great  big nothing burger . I keep fees in perspective. Lord! I was paying 2% plus for my 403b years ago plus surrender fees and management fees too and I am now paying  0.08% - or something around that on average. I am happy. My money has compounded !! Plus I have totally bought in to Vanguard Company /Corporate Philosphy -Mission Statement which I admire and respect and that has to count for something. For them low fees are a given across the board-all funds not a select few. I  think you mentioned Steve that they do not have to answer to shareholder demands. I admire that too.

 

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