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Fidelity no load REIT fund?

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  • Fidelity no load REIT fund?

    Hi everyone,

    I'm trying to add a real estate component to my portfolio (early investing days for me). My hospital's 403b plan is with Fidelity and allows for a self directed brokerage account to buy Mutual Funds not available in the default selection. There are no real estate options allowed by default.

    Ideally I would want to buy VGSLX or VNQ, but I can't buy ETFs/Stocks with the account (unfortunately) and VGSLX has a load from Fidelity.

    It looks like the Fidelity alternatives are FSRNX, FRESX, FRIFX, but they all seem to way underperform Vanguard. Is anyone familiar enough with Fidelity's real estate offerings to be able to suggest a way to approximate VGSLX?

    Thanks in advance

  • #2
    I agree you don't have good alternatives there for a REIT in your 403(b). I wouldn't worry about trying to squeeze a REIT into it and would plan on starting a ROTH outside of the 403(b) and you could do then put a REIT into it. It doesn't matter what "bucket" you put the REIT into as long as it's in a nontaxable account.

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    • #3
      Originally posted by LazerBeams View Post
      Hi everyone,

      I'm trying to add a real estate component to my portfolio (early investing days for me). My hospital's 403b plan is with Fidelity and allows for a self directed brokerage account to buy Mutual Funds not available in the default selection. There are no real estate options allowed by default.

      Ideally I would want to buy VGSLX or VNQ, but I can't buy ETFs/Stocks with the account (unfortunately) and VGSLX has a load from Fidelity.

      It looks like the Fidelity alternatives are FSRNX, FRESX, FRIFX, but they all seem to way underperform Vanguard. Is anyone familiar enough with Fidelity's real estate offerings to be able to suggest a way to approximate VGSLX?

      Thanks in advance
      use your rIRA at vanguard.

      Comment


      • #4
        I'm a Fidelity user and I too have not found a decent no load, low fee, well performing index mutual fund there for REITs. I ended up using VNQ. My guess is eventually Fido will fix that because it is one of their major problems fund-offering wise.

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        • #5
          I’ve had my Roth IRA at Fidelity for about a year. I hold some FSRNX, and it got rocked by COVID. I haven’t compared it to Vanguard’s REITs to see how badly though, ha.

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          • #6
            Originally posted by endo4jc View Post
            I’ve had my Roth IRA at Fidelity for about a year. I hold some FSRNX, and it got rocked by COVID. I haven’t compared it to Vanguard’s REITs to see how badly though, ha.
            I did not think to look before, but it appears that the Fidelity and Vanguard Real Estate Index Funds follow different indexes, Dow Jones US Select Real Estate Index and MSCI US Investable Market Real Estate Index 25/50.

            The Fidelity fund has considerably higher weighting in Office, Industrial and Residential REITS (over 50%) compared to the Vanguard fund (34%).

            Comment


            • #7
              Originally posted by VagabondMD View Post

              I did not think to look before, but it appears that the Fidelity and Vanguard Real Estate Index Funds follow different indexes, Dow Jones US Select Real Estate Index and MSCI US Investable Market Real Estate Index 25/50.

              The Fidelity fund has considerably higher weighting in Office, Industrial and Residential REITS (over 50%) compared to the Vanguard fund (34%).
              This. All real estate is not equal. Know what you own.

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