So the headline isn’t totally true. Fidelity DOES actually have 55 different ETFs according to their website, but strangely they don’t have any total market index fund ETFs. (Which is the optimal way to invest, in my opinion) All of their ETFs are either actively managed or track more narrow sectors. Why? I don’t know. @fidelity,can you comment and fill us in?!
IF I HAD TO GUESS, it’s probably because of some deal they struck with BlackRock back in the day. A few years ago, only BlackRock iShares ETFs traded free at Fidelity. Maybe they made a deal to offer free trades and get some commission from BlackRock and in return they agreed not to create competing ETFs? Tag @fidelity and let’s find out!
So what do you do if you want to invest in ETFs with Fidelity? Choose ANY ETFs you want, since they all trade free now. That is thanks to the fee price war kicked off by Robinhood which eventually caused all US brokers to offer free ETF trades.
Note that you only need to use ONE of the portfolio’s listed. Each of them will perform nearly identically to each other, each has tiny expense ratios, and each covers the global stock and bond markets.
How much of each fund do you buy? If you’re young and want an “aggressive” portfolio, something like 56% US Stock, 34% Non-US Stock, and 10% Bonds would be a great choice. Note that VT is a global ETF, so you could pick 90% VT, 10% BNDW for the same effect.
If you saw me on the street and showed me your Fidelity account and inside was any of these three portfolios, I would rate your portfolio an A+, give you a high five, and, with consent, a big sloppy kiss.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Jeremy
