REITs

[DMdoc]

What's the difference between FRXIX and FRESX - both in fidelity? I can't seem to figure out, aside from the expense ratio, what the difference is.

I have a REIT option in my 401(k) TRREX but was thinking to move the REIT to roth IRA. I have a roth with vanguard and fidelity. I could always put the REIT in Vanguard as the fees are lower.

Thanks!

[G]

Yeah, they look similar.  Go with the cheaper.  I have FRXIX in my 401k and VGSLX in a Roth.

[PenguinMD]

FRIXIX is an index fund vs FRESX, thus you see an ER difference.

You can compare their performance to see if the actively managed FRESX is worth the extra fee. Their holdings do look the similar though so all things equal go for the lower ER fee.

[The White Coat Investor]

PenguinMD wrote:

FRIXIX is an index fund vs FRESX, thus you see an ER difference.

You can compare their performance to see if the actively managed FRESX is worth the extra fee. Their holdings do look the similar though so all things equal go for the lower ER fee.

Click to expand...

The problem with using performance is that there is no guarantee of it going forward, and little persistency. In fact, most actively managed funds don't even last 20 years.