New bond fund 401k

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Johm221122
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New bond fund 401k

Post by Johm221122 » Mon Oct 30, 2017 8:41 am

My 401k will finally get (good)bond fund in December
https://institutional.fidelity.com/app/ ... fepax.html
Yield 2.21% but expense ratio of .96

I'm currently in a stable value fund paying 1.25%

Would you change?

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morbster
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Re: New bond fund 401k

Post by morbster » Mon Oct 30, 2017 9:25 am

What is the expense ratio of your current fund?

Johm221122
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Re: New bond fund 401k

Post by Johm221122 » Mon Oct 30, 2017 9:28 am

morbster wrote:
Mon Oct 30, 2017 9:25 am
What is the expense ratio of your current fund?
Stable value it pays 1.25 % after expenses(1.14%)

my name
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Location: NJ

Re: New bond fund 401k

Post by my name » Mon Oct 30, 2017 9:32 am

You can review it here, at Yahoo Finance, summary and performance.

https://finance.yahoo.com/quote/FEPAX?p=FEPAX

I don't know what your plan holds for funds, but the stable value fund is a low return one. My employer plan had 3%. I've just rolled over my 401K to Vanguard for more fund choices, I'm retired age 70.

It may be your stable value fund has a return like a total bond index. If you compare this new fund, it has similar returns over time to Vanguard's Inter Term Bond Index VBILX (returns a bit higher than the total bond index).

Johm221122
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Re: New bond fund 401k

Post by Johm221122 » Mon Oct 30, 2017 9:35 am

my name wrote:
Mon Oct 30, 2017 9:32 am
You can review it here, at Yahoo Finance, summary and performance.

https://finance.yahoo.com/quote/FEPAX?p=FEPAX

I don't know what your plan holds for funds, but the stable value fund is a low return one. My employer plan had 3%. I've just rolled over my 401K to Vanguard for more fund choices, I'm retired age 70.

It may be your stable value fund has a return like a total bond index. If you compare this new fund, it has similar returns over time to Vanguard's Inter Term Bond Index VBILX (returns a bit higher than the total bond index).
My stable value has steadily gone down from a little less than 3 %,I would hope it goes up when rates go up

Johm221122
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Re: New bond fund 401k

Post by Johm221122 » Mon Oct 30, 2017 9:41 am

My thinking is to stay with stable value till yield of bond fund is at least 1.5% more than stable value

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ruralavalon
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Re: New bond fund 401k

Post by ruralavalon » Mon Oct 30, 2017 11:12 am

Johm221122 wrote:
Mon Oct 30, 2017 8:41 am
My 401k will finally get (good)bond fund in December
https://institutional.fidelity.com/app/ ... fepax.html
Yield 2.21% but expense ratio of .96

I'm currently in a stable value fund paying 1.25%

Would you change?
Fidelity Advisor Total Bond Fund Class A (FEPAX) ER 0.96%. The fund's benchmark is the Bloomberg Barclays U.S. Universal Bond Index. I am not familiar with that index.

According to Morningstar the average effective duration = 5.39 years, the average credit quality = BBB just barely Investment-Grade.

The expense ratio is fairly high. What other bond funds are offered in your 401k?

The A shares of the fund have a front load of 4.00%. Is the load waived in your 401k?

I don't see where you found the "Yield 2.21%" for the bond fund.

According to Morningstar, the fund performance (total return) has been:
YTD------3.46%
1 year---1.62%
3 year---2.71%
5 years--2.49%
10 years 4.59%
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

my name
Posts: 535
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Location: NJ

Re: New bond fund 401k

Post by my name » Mon Oct 30, 2017 1:34 pm

ruralavalon wrote:
Mon Oct 30, 2017 11:12 am
I don't see where you found the "Yield 2.21%" for the bond fund.

According to Morningstar, the fund performance (total return) has been:
YTD------3.46%
1 year---1.62%
3 year---2.71%
5 years--2.49%
10 years 4.59%
The yield, today 2.38, is found at the link I provided above, repeat here, see summary tab, then returns on performance tab:
https://finance.yahoo.com/quote/FEPAX?p=FEPAX

net expense ratio 0.75
1 year 1.29
3 year 3.14
5 year 2.53
10 year 4.68

Yes, some high yield. Why it has over time kept beating it's category. But still a Morningstar risk of 4 star, good.

Last Bear Market returned 2.68, last bull market 4.11

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ruralavalon
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Location: Illinois

Re: New bond fund 401k

Post by ruralavalon » Mon Oct 30, 2017 3:24 pm

my name wrote:
Mon Oct 30, 2017 1:34 pm
ruralavalon wrote:
Mon Oct 30, 2017 11:12 am
I don't see where you found the "Yield 2.21%" for the bond fund.

According to Morningstar, the fund performance (total return) has been:
YTD------3.46%
1 year---1.62%
3 year---2.71%
5 years--2.49%
10 years 4.59%
The yield, today 2.38, is found at the link I provided above, repeat here, see summary tab, then returns on performance tab:
https://finance.yahoo.com/quote/FEPAX?p=FEPAX

net expense ratio 0.75
1 year 1.29
3 year 3.14
5 year 2.53
10 year 4.68

Yes, some high yield. Why it has over time kept beating it's category. But still a Morningstar risk of 4 star, good.

Last Bear Market returned 2.68, last bull market 4.11
On these numbers for the bond fund, and the Yield of 1.25% on the stable value fund, I think that I would personally prefer the bond fund over the stable value fund.

I would still like to know if the shares of the bond fund are load waived.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Johm221122
Posts: 5039
Joined: Fri May 13, 2011 6:27 pm

Re: New bond fund 401k

Post by Johm221122 » Mon Oct 30, 2017 6:42 pm

ruralavalon wrote:
Mon Oct 30, 2017 3:24 pm
my name wrote:
Mon Oct 30, 2017 1:34 pm
ruralavalon wrote:
Mon Oct 30, 2017 11:12 am
I don't see where you found the "Yield 2.21%" for the bond fund.

According to Morningstar, the fund performance (total return) has been:
YTD------3.46%
1 year---1.62%
3 year---2.71%
5 years--2.49%
10 years 4.59%
The yield, today 2.38, is found at the link I provided above, repeat here, see summary tab, then returns on performance tab:
https://finance.yahoo.com/quote/FEPAX?p=FEPAX

net expense ratio 0.75
1 year 1.29
3 year 3.14
5 year 2.53
10 year 4.68

Yes, some high yield. Why it has over time kept beating it's category. But still a Morningstar risk of 4 star, good.

Last Bear Market returned 2.68, last bull market 4.11
On these numbers for the bond fund, and the Yield of 1.25% on the stable value fund, I think that I would personally prefer the bond fund over the stable value fund.

I would still like to know if the shares of the bond fund are load waived.
No load
My other bond funds High yield(don't want) and Pimco real return 1.15 expense ratio

The good news is the fund fidelity is replacing was government bond fund that charged 1.45%

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ruralavalon
Posts: 11694
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Location: Illinois

Re: New bond fund 401k

Post by ruralavalon » Mon Oct 30, 2017 6:47 pm

Johm221122 wrote:
Mon Oct 30, 2017 6:42 pm
ruralavalon wrote:
Mon Oct 30, 2017 3:24 pm
my name wrote:
Mon Oct 30, 2017 1:34 pm
ruralavalon wrote:
Mon Oct 30, 2017 11:12 am
I don't see where you found the "Yield 2.21%" for the bond fund.

According to Morningstar, the fund performance (total return) has been:
YTD------3.46%
1 year---1.62%
3 year---2.71%
5 years--2.49%
10 years 4.59%
The yield, today 2.38, is found at the link I provided above, repeat here, see summary tab, then returns on performance tab:
https://finance.yahoo.com/quote/FEPAX?p=FEPAX

net expense ratio 0.75
1 year 1.29
3 year 3.14
5 year 2.53
10 year 4.68

Yes, some high yield. Why it has over time kept beating it's category. But still a Morningstar risk of 4 star, good.

Last Bear Market returned 2.68, last bull market 4.11
On these numbers for the bond fund, and the Yield of 1.25% on the stable value fund, I think that I would personally prefer the bond fund over the stable value fund.

I would still like to know if the shares of the bond fund are load waived.
No load
My other bond funds High yield(don't want) and Pimco real return 1.15 expense ratio

The good news is the fund fidelity is replacing was government bond fund that charged 1.45%
Great :happy, no load would seal the deal for me.

I would use Fidelity Advisor Total Bond Fund (FEPAX) rather than the stable value fund or the other two bond funds.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Johm221122
Posts: 5039
Joined: Fri May 13, 2011 6:27 pm

Re: New bond fund 401k

Post by Johm221122 » Mon Oct 30, 2017 7:06 pm

ruralavalon wrote:
Mon Oct 30, 2017 6:47 pm
Johm221122 wrote:
Mon Oct 30, 2017 6:42 pm
ruralavalon wrote:
Mon Oct 30, 2017 3:24 pm
my name wrote:
Mon Oct 30, 2017 1:34 pm
ruralavalon wrote:
Mon Oct 30, 2017 11:12 am
I don't see where you found the "Yield 2.21%" for the bond fund.

According to Morningstar, the fund performance (total return) has been:
YTD------3.46%
1 year---1.62%
3 year---2.71%
5 years--2.49%
10 years 4.59%
The yield, today 2.38, is found at the link I provided above, repeat here, see summary tab, then returns on performance tab:
https://finance.yahoo.com/quote/FEPAX?p=FEPAX

net expense ratio 0.75
1 year 1.29
3 year 3.14
5 year 2.53
10 year 4.68

Yes, some high yield. Why it has over time kept beating it's category. But still a Morningstar risk of 4 star, good.

Last Bear Market returned 2.68, last bull market 4.11
On these numbers for the bond fund, and the Yield of 1.25% on the stable value fund, I think that I would personally prefer the bond fund over the stable value fund.

I would still like to know if the shares of the bond fund are load waived.
No load
My other bond funds High yield(don't want) and Pimco real return 1.15 expense ratio

The good news is the fund fidelity is replacing was government bond fund that charged 1.45%
Great :happy, no load would seal the deal for me.

I would use Fidelity Advisor Total Bond Fund (FEPAX) rather than the stable value fund or the other two bond funds.
Thanks, at what expense ratio would be too much compared to stable value?

billfromct
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Re: New bond fund 401k

Post by billfromct » Mon Oct 30, 2017 8:11 pm

According to The Wall Street Journal, FEPAX yield is 2.21% & YTD return is 3.46% as of 10/30/2017.

The WSJ doesn't give the expense ratio for this fund.

bill

Johm221122
Posts: 5039
Joined: Fri May 13, 2011 6:27 pm

Re: New bond fund 401k

Post by Johm221122 » Mon Oct 30, 2017 8:50 pm

billfromct wrote:
Mon Oct 30, 2017 8:11 pm
According to The Wall Street Journal, FEPAX yield is 2.21% & YTD return is 3.46% as of 10/30/2017.

The WSJ doesn't give the expense ratio for this fund.

bill
The expense ratio listed would not matter my 401 would have fees tacked on
It's .96%

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