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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • How 10 of the world’s smartest investors can help you build your perfect portfolio
    Academic does not per se equal investment prowess.
    But I’ll bite……maybe
    25% SCHD (Dividend aristocrats)
    25% QQQ (tech/growth…same stocks tend to dominate SPY also, especially recently)
    15% VNQ/FREL (Real Estate)
    10% QQQJ (next big tech giants)
    15% FSMEX (medical tech/devices)
    10% BIV for cash/ballast (and better returns than Treasury’s….rebalance when down)
    More complicated than the 90/10, and holes can be shot in the above from diff sides. But it’s my stab at it!
  • Time to sell or buy ?
    I’ve been adding to FSMEX
  • screening large numbers of funds
    I use the Fidelity screener by Morningstar category, and sort by standard deviation and Sharpe ratio. I try to find funds that perform well in both categories, which of course is difficult. I'm using more and more Fidelity funds, which I can sell without short-term redemption fees, or etfs. The only stock funds(other than my Vanguard account) I'm holding onto long-term are PRWCX CTFAX FSMEX MERFX ARBOX ADANX VARAX and FDGRX.
  • Revisiting Defensive Funds
    I like to look at upside and downside cature ratios of mutual funds to see how defensive a fund is. The Morningstar site provides this data (look in the "risk" tab). When I use Portfolio Visulaizer's data it appears inconsistent with M* (FWIW). You may to constrain PV to the last ten years of data to match M*'s data. PV data can go back to 1985 if the fund is that old.
    One of the best funds for this type of risk/reward is PRMTX. Here's its risk profile (Upside=114 / Downside=65):
    https://morningstar.com/funds/xnas/prmtx/risk
    Some others I hold:
    FSMEX (100/58)...100% of the upside with 58% of the downside
    PRWCX (117/88)
    PRNHX (108/69)
    PRHSX (98/71)
    PRGSX (122/86)
    A fund like CTFAX has a (78 upside cature/13 downside capture) so this fund captures 78% of the upside (reward) while only taking 13% of the downside risk. Pretty good risk/reward.
    SVARX works hard (ER over 3%) to produce an upside of 128 and a downside of (-53). Help me understand the negative downside capture number.
    Some other notables in this thread:
    TGHNX (123/72)
    Explanation of Upside and Downside Capture:
    https://freefincal.com/how-upside-and-downside-capture-ratios-are-calculated/
  • Recommendations for new fund house?
    @hank - the only Fidelity funds I own I own through my brokerage accounts, FSMEX in a taxable account and FTEC in my Roth account.
    As far as i know any fund that Fidelity carries can be transferred in kind to a similar brokerage account. If you own a TRP fund in a traditional IRA and Fidelity carries that fund then you can transfer in your shares to a traditional IRA brokerage account. I'm not positive but I don't believe that Fidelity has access to all of the TRP funds. For example, I believe that you are a good sized holder in PRWCX so it pays to check before transferring. I've owned 4-5 different TRP funds which I had no trouble transferring merely for bookkeeping ease. If you do the transfer in cash then of course you can buy whatever you want at Fidelity.
  • Buying this week's market dip?
    Initiated positions in ONEQ and V today, buying fractional shares at FIDO. Slicing and dicing with each incremental drop. Along with FSMEX cost averaging, can start to build the volatile/riskier side of my portfolio.
    Need more days like this. Many more.
  • Buying this week's market dip?
    Have to ignore the gyrations and follow the annual DCA plan... but I confess... @JD_co idea of adding to FSMEX doesn’t sound like a bad idea. Not selling. Hopping off the rollercoaster in the middle or any part of the ride is never a great strategy. Wish I was smart enough to spot a “bottom” but I’m not.
  • Buying this week's market dip?
    If so, what are you buying (and selling)?
    I will be buying FSMEX.
  • Health Sector Funds: FSPHX vs FSMEX and others
    Finally traded FSPHX for FSMEX - long term conviction move. @TheShadow I checked back on PDFDX and sure enough it's up 22.81 for the year vs. FSMEX 12.25. It has performed very well since you mentioned it.
  • 2020-21 Capital Gains estimates
    FSRPX and FSMEX paid capital gains 4/9/21. I did finally see it posted on Fidelity's website. I'll check out M* thanks @DaveSch...good stuff...that worked:
    image
  • Digging into Ark Innovation's Portfolio
    Hi @LewisBraham
    I've read this previous, and that she also supported Trump; but to the aspect of the "tax laws" changes that were put in place during his term.
    Covid, IMHO; pushed the disruption technologies forward faster than they might have traveled during normal market conditions.
    I've remained a "tech" investor for many years, which continued to become more apparent to me over many years from my technology background. Thus, I continued to follow technology advancements and investments. A personal view of this was combined to "discover" a best of both worlds related to the "boomers" and technology; although medical technology is not strictly related to boomer medical. I still place favor towards an investment as FSMEX or a similar etf, IHI.
    However, I remain fully open and aware to the some of the disruptive technology holdings found among the ARK funds. Some will flounder about and/or fail. But, I think the "themes" in place are fully valid. I/we do our best to remain informed. Conversations and questions to and with the under 40 age group helps to discover what impacts are taking place in the "financial tech." area. Hell, I/we still write some paper checks; but our first exposure with early "fin tech." was the payments we received via PayPal from our sales on eBay about 20 years ago when it was wholly owned by eBay; versus paper checks and/or VISA.
    We remain in interesting times, eh?
    Take care,
    Catch
  • good allocation fund for early retiree
    Hi @sma3
    My sister who knows nothing about investing wants a conservative asset allocation fund in early retirement for an inheritance she doesn't need to live on.
    I'll presume from your statement that: your sister is already in retirement and that her inheritance will be invested in a taxable account.
    I noted the following a few days ago regarding a 529 account that was started in 2006 but could be applied to a taxable account, too:
    >>>We set our own allocation, being 50/50 with VITPX and VBMPX. The expense ratio for the funds are .02 and .03%. VITPX holds 3,400 equities and VBMPX holds 18,000 bonds. YOW !!!
    The 50/50 ratio is required to auto balance once per year. So, the ratio has never traveled to far outside of 50/50.
    The 10 year total return for this blend of 2 funds is 8.705%.
    I've used FBALX as a benchmark for our own investments to discover how much of a smart arse or dumb arse we may be at any given time. FBALX is high on the list of balanced funds in it's category.
    FBALX has a 10 year annualized return of 10.83%. <<<
    An equivalent to the above could be a simple 50/50 of SPY and AGG (or BAGIX, a plain vanilla active managed AA bond fund); OR whatever percentage mix an individual wants to choose for these two. The rough math indicates a 50/50 mix of the above to provide about a +8.45% blended total return for the past 10 years and +6.95% over the past 15 years.
    My personal choice using AGG or BAGIX examples for bonds, would be the equity side into FSPHX or FSMEX for the 50/50 mix.
    We individual investors find ourselves at an unfamiliar place recently, relative to the AAA bond sector. Although we have BAGIX as part of our portfolio, I/we don't know how much support/ballast will arrive during a greater than -20% equity dive, although I still feel central banks and large investment organizations would still run to AAA bonds during an equity melt.
    NOTE: 50/50 of SPY (or an index) and AGG = -.4% YTD, VWINX = -.25% YTD and FBALX = +2.3% YTD.
    I think your sister could have a decent risk and reward blend of no more than 3 holdings among bonds and equity to satisfy a meaningful performance portfolio.
    Lastly, retirement finds too many variables for individuals/couples. If monetary needs are satisfied for the normal expenses, one's investments should still include equities, IMHO. Forty years of favorable bond returns are at a new place right now; and I surely don't know the forward road in this sector for a fully buy and hold portfolio.
    Take care,
    Catch
  • Health Sector Funds: FSPHX vs FSMEX and others
    @Graust and @carew388 et al
    As time allowed today, I reviewed the prospectus for FSMEX (a select fund), as well as FBALX and FPURX; more traditional mutual funds.
    The Excessive Trading Policy link I posted previous and dated Sept. 2020 and the language within is not described within the full prospectus for the 3 funds in this write.
    FSMEX prospectus is dated April, 2020 and both FBALX and FPURX are dated Oct. 2020.
    While at the Fido site (no login required) one should search for fund "x". Once open/displayed, select the prospectus TAB; which will pull up the summary prospectus. Select the "prospectus" tab from this new window. With this open, select " Additional Information about the Purchase and Sale of Shares" found along the left edge.
    There is a conflict of information about what constitutes a possible problem with round trip transactions and time frames; RELATIVE to the Sept. 2020 link I posted 2 sections back. A phone call will be needed to clarify what/which is true.
    Note: We're not frequently money movers, but our transactions would be more than $10k.
    Now.........how many call centers/at home staff are being overrun from having to re-route calls due to weather or volume problems?
    Anyhoo, I needed to clarify what I had posted previous; as I don't want anyone to be misdirected with information. The question/thought provided a needed exercise in due diligence; and to always read a prospectus, or sections thereof.
  • Health Sector Funds: FSPHX vs FSMEX and others
    I have also always thought of IHI as the comparable ETF for FSMEX. But I, tonight, found XHE. It’s the SPDR HC Equipmenr ETF. There appears to be significant overlap between the two (link). And doing a cursory check of recent performance, XHE has outperformed IHI over the last year or so. Has anyone looked at, or does anyone hold, XHE?
    Also, and many may know this, but the Fido Select Sector funds do not seem to have a redemption fee if held for under 60 days.
    I hold FSMEX as the single holding in my wife’s Fido only 403b (which she can no longer add to, and which is only about $5K). Good fund! Sold out of it in my own portfolio for FBIOX among others. Sorry I did that! I also bought a small piece of the Fido Healthcare Disruptor fund to see how it does.
    Also, EDOC is the ETF that focuses on telemedicine and related stocks, if anyone is interested.
  • Health Sector Funds: FSPHX vs FSMEX and others
    Hi all... not trying to spam the thread - I think Telehealth will continue to grow and be extremely important to the Health Sector. My thinking has nothing to do with Covid - its what the Millennial/Gen Z expect: Convenience! So, I found this story on Mutual Funds with Telehealth. Note: Its from April 2020. Guess which fund is mentioned? (answer below)
    https://www.nasdaq.com/articles/3-funds-to-gain-from-rising-trends-in-telehealth-2020-04-14
    FSMEX
  • Health Sector Funds: FSPHX vs FSMEX and others
    @JonGaltIII
    Only my personal opinion. I do not rely upon star rating changes via M*. I watch for performance changes in a given investment and its related sector. Management or style changes with an investment could also have an impact, be it negative or positive. This gives me enough information to make decisions.
    As mutual fund buys and sells close at the end of a business day pricing, I forgot to add that if you choose to invest in FSMEX on a given start day, you may observe the etf IHI pricing through the trade day to give a very close reference of what pricing may be for FSMEX at the end of a business day.
  • Health Sector Funds: FSPHX vs FSMEX and others
    Thanks all. Really helpful info and I appreciate your contributions to the discussion. I think I may just swap for FSMEX but only because I'm trying to simplify/have less funds in this particular account. I think this sector will be strong for a while ... concurring with what you all have said. Think Baby Boomers.
  • Health Sector Funds: FSPHX vs FSMEX and others
    As @catch has noted I see no reason one couldn't hold both except as a means for holding down the fund count. I wouldn't feel terrible about holding either fund however. They both have done quite well over time but with the edge going to FSMEX. No one knows which will do better in the future.
  • Health Sector Funds: FSPHX vs FSMEX and others
    Jon, you noted about selling FSPHX to purchase FSMEX. I would personally consider this a viable choice. OR to start to build a position in FSMEX if you have cash or other holdings you have considered selling; as Fidelity has the $0 minimum in place for a purchase of FSMEX.
    I must add this note about our equity portfolio. Our entire portfolio is within tax deferred accounts: being traditional and Roth IRA's; and of course, we do not have to take into account any taxable sells. This status must also be a consideration when shuffling monies around, yes?
    You also mentioned a change in the MFO rating for FSMEX. I can not offer an opinion one way of the other about the implication of this change.
  • Health Sector Funds: FSPHX vs FSMEX and others
    @catch22 - what you said about boomers is exactly why I want extra exposure to this sector. So if I understand your post... if I believe more in health care equipment... go with FSMEX.