How Do Fidelity’s Mutual Funds Stack Up?

Financial companies get a bit testy when I compare their mutual funds with indexes (if my email inbox is any indication).  

But it’s still worth publishing such data for Canada’s national paper.  

You can read my article here





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

You may also like...

16 Responses

  1. Ken Kowalsky says:

    What do you say about Syndicated Mortgages?
    Ken

  2. Daniel says:

    Hey Andrew,

    Just came across this article today that fits in nicely with your overall arguments in favor of index funds:

    http://www.theatlantic.com/business/archive/2014/02/the-crushingly-expensive-mistake-killing-your-retirement/283866/?google_editors_picks=true

  3. Jeff says:

    Let’s say you decide the current bull market is about to end and the markets will take a nose dive. How would you change the allocation of your portfolio vis-a-vis the safety of cash?

    • John says:

      Have you not read his book?

      • Jeff says:

        Perhaps you could be even more helpful and tell me to which page(s) of the book I should refer, as I have not memorized it yet. There’s a good lad!

        • I idea, Jeff, is not to speculate at all. By doing so, you may switch to cash….then the markets might keeps rising. Rebalancing a portfolio over time will give you higher odds of success than speculating. You’ll always be a bit greedy when others are fearful and a bit fearful when others are greedy.

          Cheers,
          Andrew

        • John says:

          Are you serious? The book is only 177 pages long and it’s a very easy read (which is what I like). The whole book is on the advantages of buy and hold/passive investment vs speculation! I’m guessing you haven’t read it, so here is the free lunch you are looking for: do nothing and keep buying, especially when it takes a nose dive – it will be cheaper!

          Here is a link for you from Warren Buffet:

          I feel sorry for Andrew. The guy is good enough to give up his own time to try and answer our questions, which many of us are very grateful! The least we can do is spend time reading the book, reviewing the forums on this website and suggested links, before asking questions which go over very old ground.

          • Jeff says:

            Well, John, not only do you possess an exceptionally warm and engaging personality, but I also find your financial advice to be worth every penny that I paid for it. Cheers!

  4. John says:

    You’re welcome laddie!

  5. Neil says:

    Hi Andrew
    I’m trying to work out the difference between the service fee and ongoing charges (TER) for a tracker fund.
    For example, I have an ISA account with Fidelity UK and hold the Fidelity Index UK Fund P-Acc
    They advertise a very low rate of 0.07% in ongoing charges however also charge me 0.35% service fee (so my total costs are 0.42%)
    Is this common when holding a Tracker fund?
    Do you have to purchase tracker funds through platforms like Fidelity and is a 0.35% cost competitive?
    I can’t seem to find other rates from DBS Vickers / Saxo Markets etc… without signing up for them.
    Thanks
    Neil

    • Neil,

      In most cases, when you buy an index costing 0.07%, that’s the only ongoing charge you would pay. In the case of TD Direct International and DBS Vickers, you would pay no annual additional fee, just a one time commission to make each purchase. That said, you could only open such accounts if you are an expatriate. If you are not an expat, you should still easily be able to find a UK brokerage that does not charge an annual account fee, along with the hidden ETF costs.

      Cheers,
      Andrew

  6. JP says:

    This information shows that Fidelity now has lower fees than Vanguard. https://www.fidelity.com/mutual-funds/investing-ideas/index-funds

    Anything hidden here?

    • toony says:

      Fidelity is a very well known, respected company like Vanguard – also highly recommended.

      They are using those funds as a loss-leader to cross-sell other products (Vanguard’s charter doesn’t allow this practice so won’t be matching them)

      Highly recommended if you are new to index investing. They aren’t that great few existing investors as you may save a few cents on fees but it may cost you dollars due to tax/time/effort switching accounts.

Leave a Reply

Pass the Test *