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Which Fidelity Bond fund for taxable account?

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  • Which Fidelity Bond fund for taxable account?

    I partially cut bait with my advisor by pulling my taxable account over to Fidelity to self manage.

    All of my other investing is in my tax-protected accounts such as 403B and roth IRA.  I'm in the highest tax bracket, and have simplified my other investments to just a few index funds.  This taxable money represents about 15% of my investments.

    What thoughts do you have on which Fidelity Bond fund to use in this taxable account?

    There is FSITX-Fidelity Spartan US Bond Index Advantage.  Lowest expense ratio of 0.05%, but would likely generate more taxes.

    One other option is FTABX- Fidelity Tax Free Bond.  Has gross expense of 0.5%, but net expense of 0.25%  (I don't quite get that).  But gains should be tax free.

    Or are there other better options?

     

  • #2
    I use Fidelity Intermediate Municipal Income (FLTMX)

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    • #3
      FTABX and FHIGX are worth looking at.

      Basically the only bond funds I would put in a taxable account are munis because other bond funds are very tax-inefficient, since the main way bonds generate returns is through dividends.

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