I was looking through my current holdings and of my bond allocation which is in the US Bond Index fund (FSITX) at Fidelity I noticed the fund holds around 27% of my funds in mortgage backed securities (MBS). I know they do this to track the target index (Bloomberg Barclays US Aggregate Bond Index) but I'm questioning if it is good as a holding for my bonds area of my portfolio. I would expect MBS to act more like equities in that they may suffer more along with the stock market than general bonds. Does anyone have any thoughts? I am considering moving over to the Fidelity Intermediate Treasury Bond Index (FIBAX) instead.
I'm considering the 24% holding of corporate bonds in FSITX as a possible detractor as well. I would prefer my bonds act like bonds as much as possible.
I'm considering the 24% holding of corporate bonds in FSITX as a possible detractor as well. I would prefer my bonds act like bonds as much as possible.
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