Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
I already have FSKAX (Fidelity Total US Stock Market) in my Taxable... I don't want to buy more because it has a high turnover rate (11%) and its technically a mutual fund that trades at the end of the day...
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
From what I can tell, maybe iShares IVV (S&P 500) might be a good option... are there other choices as well?
I understand I can hold Vanguard's S&P 500 ETF (VOO), but it looks like there's a one-time $75 fee for holding it in my Fidelity account. Not a big deal, but are there other reasons not to hold a Vanguard ETF in a Fidelity account? When I first became a Boglehead I was steered away from holding Vanguard funds in my Fidelity account.
Any help is greatly appreciated!
Thank you
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
From what I can tell, maybe iShares IVV (S&P 500) might be a good option... are there other choices as well?
I understand I can hold Vanguard's S&P 500 ETF (VOO), but it looks like there's a one-time $75 fee for holding it in my Fidelity account. Not a big deal, but are there other reasons not to hold a Vanguard ETF in a Fidelity account? When I first became a Boglehead I was steered away from holding Vanguard funds in my Fidelity account.
Any help is greatly appreciated!
Thank you
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
I think the best option is indeed VOO.
The $75 fee you're referring to probably applies to the mutual fund version, VFINX.
Fidelity eliminated commissions on all ETFs, so Vanguard's now trade commission-free.
The $75 fee you're referring to probably applies to the mutual fund version, VFINX.
Fidelity eliminated commissions on all ETFs, so Vanguard's now trade commission-free.
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
What is your thinking on going from Total Market (3000 companies) down to just the S&P 500?
I would purchase a total market ETF. How about IWV (iShares Russell 3000 ETF) or VTI (Vanguard Total Market)?
I would purchase a total market ETF. How about IWV (iShares Russell 3000 ETF) or VTI (Vanguard Total Market)?
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
I own VTI In my Fidelity taxable accounts as well as my Roth’s. I have also owned VOO in these accounts as a TLH partner. I am not charged a $75 fee or any other fee that I see as long as I trade online. So if you like VOO, buy it.
It used to be that holding vanguard funds outside of vanguard kept you from owning Admiral share classes. To buy vanguard mutual funds at Fidelity, you pay a commission. Maybe that is why you were steered away in the past. But the no commission ETF world is different.
It used to be that holding vanguard funds outside of vanguard kept you from owning Admiral share classes. To buy vanguard mutual funds at Fidelity, you pay a commission. Maybe that is why you were steered away in the past. But the no commission ETF world is different.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Turnover and dividends are not the same. VOO is free to purchase.Hiwatter wrote: ↑Fri Aug 14, 2020 11:52 am I already have FSKAX (Fidelity Total US Stock Market) in my Taxable... I don't want to buy more because it has a high turnover rate (11%) and its technically a mutual fund that trades at the end of the day...
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
From what I can tell, maybe iShares IVV (S&P 500) might be a good option... are there other choices as well?
I understand I can hold Vanguard's S&P 500 ETF (VOO), but it looks like there's a one-time $75 fee for holding it in my Fidelity account. Not a big deal, but are there other reasons not to hold a Vanguard ETF in a Fidelity account? When I first became a Boglehead I was steered away from holding Vanguard funds in my Fidelity account.
Any help is greatly appreciated!
Thank you
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Does fund "turnover" not create capital gains that are kicked out in dividends? Sure seem that way with FSKAX.Ferdinand2014 wrote: ↑Fri Aug 14, 2020 12:24 pmTurnover and dividends are not the same. VOO is free to purchase.Hiwatter wrote: ↑Fri Aug 14, 2020 11:52 am I already have FSKAX (Fidelity Total US Stock Market) in my Taxable... I don't want to buy more because it has a high turnover rate (11%) and its technically a mutual fund that trades at the end of the day...
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
From what I can tell, maybe iShares IVV (S&P 500) might be a good option... are there other choices as well?
I understand I can hold Vanguard's S&P 500 ETF (VOO), but it looks like there's a one-time $75 fee for holding it in my Fidelity account. Not a big deal, but are there other reasons not to hold a Vanguard ETF in a Fidelity account? When I first became a Boglehead I was steered away from holding Vanguard funds in my Fidelity account.
Any help is greatly appreciated!
Thank you
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Hiwatter wrote: ↑Fri Aug 14, 2020 12:27 pmDoes fund "turnover" not create capital gains that are kicked out in dividends? Sure seem that way with FSKAX.Ferdinand2014 wrote: ↑Fri Aug 14, 2020 12:24 pmTurnover and dividends are not the same. VOO is free to purchase.Hiwatter wrote: ↑Fri Aug 14, 2020 11:52 am I already have FSKAX (Fidelity Total US Stock Market) in my Taxable... I don't want to buy more because it has a high turnover rate (11%) and its technically a mutual fund that trades at the end of the day...
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
From what I can tell, maybe iShares IVV (S&P 500) might be a good option... are there other choices as well?
I understand I can hold Vanguard's S&P 500 ETF (VOO), but it looks like there's a one-time $75 fee for holding it in my Fidelity account. Not a big deal, but are there other reasons not to hold a Vanguard ETF in a Fidelity account? When I first became a Boglehead I was steered away from holding Vanguard funds in my Fidelity account.
Any help is greatly appreciated!
Thank you
Turnover really only matters for mutual funds so when evaluating most ETFs you should ignore that. Once an ETF gets established it is quite rare for them to have any capital gains distributions, which you will certainly get with a mutual fund that has any turnover. You mentioned dividends but both ETFs and MF will have those, it is the cap-gains distributions you want to avoid.
Some State Street ETFs had cap-gains problems for a while (apparently they have corrected that), and I know for example that Vanguard's VSS had some it's very 1st year (has never had one since) but for any large-cap or total-market ETF from a major fund provider you should never see one. Even high-turnover semi-active funds generally can manage to not distribute any. For example I hold a lot of FNDC with 25% turnover and don't believe it has ever distributed a cap-gain.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
I don't think you can go wrong with IVV or VOO, now that Fidelity (and many other brokerages) allow you to buy or sell most ETFs commission-free. Both IVV and VOO have very low ERs and very narrow bid/ask spreads.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
+1 to this. Would suggest VTI (80% of which is composed of the S&P500 anyways), but if you're set on just S&P500 then would use VOO. I've had both in my Fidelity accounts, and they don't charge fees/commissions for them anymore.lazynovice wrote: ↑Fri Aug 14, 2020 12:20 pm I own VTI In my Fidelity taxable accounts as well as my Roth’s. I have also owned VOO in these accounts as a TLH partner. I am not charged a $75 fee or any other fee that I see as long as I trade online. So if you like VOO, buy it.
It used to be that holding vanguard funds outside of vanguard kept you from owning Admiral share classes. To buy vanguard mutual funds at Fidelity, you pay a commission. Maybe that is why you were steered away in the past. But the no commission ETF world is different.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Capital gains and dividends are separate. Turnover does not automatically translate to capital gains unless it results in a net gain. A mutual fund can have turnover with losses as well as gains. FSKAX had a turnover of 11% over the previous 12 months ending 2/2020. In 2019 it generated capital gains of 0.127 on a share price of 82.34 or .1% (1/10 of 1% or 0.001) vs 11% ( or 0.11) turnover. FSKAX has generated $0 in capital gains in 2020. It has performed identical to VTSAX the last 10 years to date.Hiwatter wrote: ↑Fri Aug 14, 2020 12:27 pmDoes fund "turnover" not create capital gains that are kicked out in dividends? Sure seem that way with FSKAX.Ferdinand2014 wrote: ↑Fri Aug 14, 2020 12:24 pmTurnover and dividends are not the same. VOO is free to purchase.Hiwatter wrote: ↑Fri Aug 14, 2020 11:52 am I already have FSKAX (Fidelity Total US Stock Market) in my Taxable... I don't want to buy more because it has a high turnover rate (11%) and its technically a mutual fund that trades at the end of the day...
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
From what I can tell, maybe iShares IVV (S&P 500) might be a good option... are there other choices as well?
I understand I can hold Vanguard's S&P 500 ETF (VOO), but it looks like there's a one-time $75 fee for holding it in my Fidelity account. Not a big deal, but are there other reasons not to hold a Vanguard ETF in a Fidelity account? When I first became a Boglehead I was steered away from holding Vanguard funds in my Fidelity account.
Any help is greatly appreciated!
Thank you
https://fundresearch.fidelity.com/fund- ... AX%2CVTSAX
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
IVV or VOO for sp500
ITOT or VTI or SCHB for total market
There are no fees to buy ETFs
ITOT or VTI or SCHB for total market
There are no fees to buy ETFs
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
As noted by other posters, the turnover rate doesn't necessarily translate to any meaningful capital gains. Whether 0.1% capital gains is too much is up to you. Example: If you have $100,000 in FSKAX, there'll be about $100 in cap gains distributions. At 15% cap gains tax, that's $15.Hiwatter wrote: ↑Fri Aug 14, 2020 11:52 am I already have FSKAX (Fidelity Total US Stock Market) in my Taxable... I don't want to buy more because it has a high turnover rate (11%) and its technically a mutual fund that trades at the end of the day...
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
...
Reasons to stick with FSKAX:
- 11% turnover is low enough.
- FSKAX expense ratio is 0.015% which is very, very low
- A total stock market has some (minor) advantages over the S&P 500
- trading at the "end of the day" just means your trades take place at the fund's Net Asset Value rather than what market traders think it's worth during the day. Usually market price and NAV are nearly the same but sometimes an ETF can trade at a premium to NAV. Some investor prefer mutual funds for this reason and/or they dislike getting a trade price that can go up and down intraday. To be fair, some investors prefer ETFs because they know they're getting a fair market price. Personally I don't think there's a strong reason to exclusively trade in MFs or ETFs, but that's up to you.
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Am I the only one who finds that 11% number a bit...shocking? When I read that, I thought it could not be correct, but that is what the Fido site says.
Why on earth would a total stock index fund have that much turnover?
Why on earth would a total stock index fund have that much turnover?
Link to Asking Portfolio Questions
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Good point, total stock and S&P 500 funds usually have a lower turnover in 4-5 % range.
There was an earlier thread about your question with one explanation that it was related to a big change last year to Fidelity Freedom Index Funds swapping which fund was used for US stock allocation.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
It was actually because they changed the allocation percent for international. The fund lineup changed shareclass designation to a closed version of the existing funds, but not related to turnover. Not sure about FSKAX, but the S&P 500 index FXAIX only had 4% turnover and their EAFE MSCI international index FSPSX had a turnover of 2%. Previous years FSKAX has been in the 4% range.sycamore wrote: ↑Fri Aug 14, 2020 3:21 pmGood point, total stock and S&P 500 funds usually have a lower turnover in 4-5 % range.
There was an earlier thread about your question with one explanation that it was related to a big change last year to Fidelity Freedom Index Funds swapping which fund was used for US stock allocation.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
My guess is that it's somewhat an artifact of the date of the annual report: 2/29/20
That report showed a 16.5B decrease in assets due to share transactions, I suspect due to customer selling during the February downturn. Net assets at the end of the period were 46B. Turnover is defined as "the lesser of amounts of purchases or sales of long-term portfolio securities divided by the monthly average value of long-term securities owned by the fund".
So if customers sell the fund, the fund has to sell stocks, increasing the turnover rate.
Annual report available here.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
so to confirm, if I buy VOO at my Fidelity Taxable brokerage there are no fees correct?
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Correctstocknoob4111 wrote: ↑Wed Oct 20, 2021 8:35 pm so to confirm, if I buy VOO at my Fidelity Taxable brokerage there are no fees correct?
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
what about selling? is it $4.95 to sell? that is what I was charged few months ago to sell stock but not sure about ETFslazynovice wrote: ↑Wed Oct 20, 2021 9:17 pmCorrectstocknoob4111 wrote: ↑Wed Oct 20, 2021 8:35 pm so to confirm, if I buy VOO at my Fidelity Taxable brokerage there are no fees correct?
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
I vote VOO.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
What was the fee you were charged? There is no fee for stocks/ETFs at Fidelity.stocknoob4111 wrote: ↑Thu Oct 21, 2021 2:04 pmwhat about selling? is it $4.95 to sell? that is what I was charged few months ago to sell stock but not sure about ETFslazynovice wrote: ↑Wed Oct 20, 2021 9:17 pmCorrectstocknoob4111 wrote: ↑Wed Oct 20, 2021 8:35 pm so to confirm, if I buy VOO at my Fidelity Taxable brokerage there are no fees correct?
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
I was charged $4.95 for selling company ESPP stock
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
That must be something unique to the ESPP. There is no charge to sell VOO or any other ETF.
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Do you have access to NTSX? https://www.optimizedportfolio.com/ntsx/
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
I have bought and sold VOO in my fidelity account, there is no fee either way.stocknoob4111 wrote: ↑Thu Oct 21, 2021 2:04 pmwhat about selling? is it $4.95 to sell? that is what I was charged few months ago to sell stock but not sure about ETFslazynovice wrote: ↑Wed Oct 20, 2021 9:17 pmCorrectstocknoob4111 wrote: ↑Wed Oct 20, 2021 8:35 pm so to confirm, if I buy VOO at my Fidelity Taxable brokerage there are no fees correct?
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Either iShares Core S&P 500 ETF (IVV) ER 0.03% or Vanguard S&P 500 ETF (VOO) ER 0.03% will do fine.Hiwatter wrote: ↑Fri Aug 14, 2020 11:52 am I already have FSKAX (Fidelity Total US Stock Market) in my Taxable... I don't want to buy more because it has a high turnover rate (11%) and its technically a mutual fund that trades at the end of the day...
What I do want in my Fidelity Taxable:
- An ETF (as I understand it, ETF's are preferred in Taxable Accounts)
- Low Turnover (so I don't have to pay as much in taxes each year on the dividends)
- Low fees
From what I can tell, maybe iShares IVV (S&P 500) might be a good option... are there other choices as well?
I understand I can hold Vanguard's S&P 500 ETF (VOO), but it looks like there's a one-time $75 fee for holding it in my Fidelity account. Not a big deal, but are there other reasons not to hold a Vanguard ETF in a Fidelity account? When I first became a Boglehead I was steered away from holding Vanguard funds in my Fidelity account.
Any help is greatly appreciated!
Thank you
Don't waste another second trying to decide, both are good, just pick one.
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Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
i have IVV and VOO, n o complaints there
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
With a 20 basis-point expense ratio? Why do you feel it's worth it? Thx.cat_guy wrote: ↑Thu Oct 21, 2021 6:46 pm Do you have access to NTSX? https://www.optimizedportfolio.com/ntsx/
Fidelity zero expense funds would be my choice if you are already in Fidelity.
(I guess in a taxable account Vanguard or Ishares or Schwab ETFs are best, as many have noted above. they are all equivalent as far as I can see.)
Re: Ok, So what S&P 500 ETF do I buy in my Fidelity Taxable Account?
Some people find it interesting and very likely to consistently beat the market if pre-volkner policy doesn't return. (I'm open to corrections/feedback on this characterization )rgs92 wrote: ↑Fri Oct 22, 2021 9:56 amWith a 20 basis-point expense ratio? Why do you feel it's worth it? Thx.cat_guy wrote: ↑Thu Oct 21, 2021 6:46 pm Do you have access to NTSX? https://www.optimizedportfolio.com/ntsx/