You frequently mention that it is important to diversify, avoid “fat clogged” distribution systems and invest in low-cost index funds. You also frequently mention funds such as the Vanguard Balanced Index fund shares or the Schwab U.S. Broad Market fund and Schwab U.S. Tips fund. Our IRA, however, is with Fidelity. Could you suggest some Fidelity funds similar to the above? — F.B., Oradell, N.J.
Fidelity is a managed-funds shop and has only a few index funds of its own. They are called Spartan funds. They have competitive, but not rock-bottom, low costs. Fidelity Spartan Total Market Index (expense ratio 0.1 percent) is the equivalent of the Vanguard Total Stock Market exchange-traded fund (expense ratio 0.05 percent) and the Vanguard Total Stock Market Index 1 mutual fund (expense ratio 0.04 percent).
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