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So I use Fidelity and they sold me their target managed fund for my Roth IRA.
My question is, why would I do that and not just get an S&P low cost Index Fund, specifically the Fidelity version FXAIX?
Here’s the comparison:
Fidelity managed target fund-average life of return to date is 7.70%. It’s got an expense ratio of 0.75%
Fidelity S&P FXAIX-average life of return to date is 13.22%. It’s expense ratio is 0.02%
It also seems like a large portion of the target fund is made up of the S&P anyway.
That seems like one hell of a huge difference. Any downside to this in your minds?
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