Announcement

Collapse
No announcement yet.

Best way to compare funds

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Best way to compare funds

    So I've been reading posts for 5 years now and trolling the forum but this is my first time post.

    Here's my question: What's the best way to compare funds?

    Context

    While in residency I just contributed to a roth IRA and bought Vanguard Small and Mid cap US mutual funds.

    However, I just opened my first 401k as a new independent contractor EM physician and put $54k into my account at e-trade.

    I've written an investor statement with the goal of 60% US Stocks, 20% International, 10 REIT, 10% Bond/Cash with today's goal of putting $14k into an international mutual fund

    I have a few options to choose from with a couple examples being:

    FIDELITY INTERNATIONAL INDEX PREMIUM (FSIVX) with ER of 0.06%

    or

    FIDELITY INTERNATIONAL INDEX INVESTOR (FSIIX) with ER of 0.16%

     

    I've used morning star to look at both of them, and I just can't figure out why you would ever buy the one with the higher expense ratio. There are also vanguard international funds but they either require a huge buy-in or have higher expense ratios as well. The investment ratios as far as the large to small cap ratios are exactly the same between the above funds. I just fell like I'm missing something. That whole "you get what you pay for" phrase is playing on a loop in my head but I can't figure it out.

     

    Thoughts?

    How do you do research?

    Is it always best to just buy the cheapest expense Ratio?

    Thanks in advance


     

  • #2
    I think the difference may be in the amount invested. Just like Vanguard's admiral shares vs investor shares. Fidelity's fund comparison online will tell you this.

    Comment


    • #3

      Comment


      • #4
        since you are putting 14k to work buy the cheaper premium class shares

        Comment


        • #5
          Curious myself. What exactly is the difference in these funds ? Like what is the difference in spartan fidelity index funds vs regular s&p500 fidelity index ??

          Comment


          • #6




            Curious myself. What exactly is the difference in these funds ? Like what is the difference in spartan fidelity index funds vs regular s&p500 fidelity index ??
            Click to expand...


            I do not have fidelity so can't comment specifically on these funds but I'd look at ER, minimum investment allowed, and how the money is specifically invested (small vs mid vs large cap, industry distribution, weight, and such)

            Comment


            • #7







              Curious myself. What exactly is the difference in these funds ? Like what is the difference in spartan fidelity index funds vs regular s&p500 fidelity index ??
              Click to expand…


              I do not have fidelity so can’t comment specifically on these funds but I’d look at ER, minimum investment allowed, and how the money is specifically invested (small vs mid vs large cap, industry distribution, weight, and such)
              Click to expand...


              ER I understand but what is "minimum investment allowed" ? in adventure's example, is that $2,500 minimum that stock investor has to put in? Just making sure I understand. Thanks!

              Comment


              • #8
                Yes, your understanding is correct, complete newbie. A lot of funds will require minimum amounts purchased in order to start investing in that fund. In adventure's example, the two funds are share classes of the same fund--an investor class and a premium class. The premium class is more desirable bc it has a lower ER, but that comes with an increased required minimum of $10k vs $2.5k of investment. You have likely heard similar things about Vanguard and their Investor and admiral class shares. Oftentimes one will start in the "lower" class (e.g. Investor) and eventually build up enough to qualify for the "higher" class (e.g. Premium for Fidelty, Admiral for Vanguard). In my experience the fund companies bump you up (or down if you fall below the minimum) automatically.

                Comment

                Working...
                X