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  • msf June 2019
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ftbfx bond fund

I am considering closing out a money market account and buying shares in ftbfx fund. I want a moderate risk bond fund. would this fund be a good choice.

Comments

  • I'm not sure the timing is great (bonds have had a great short term run, as the 10 year has dropped in yield from around 2.75% in late January to 2.14% today). That said, it seems like a solid long term holding.
    https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/TextView.aspx?data=yieldYear&year=2019

    Moderate expenses for a bond fund, core plus (so it won't shy away from a slug of junk bonds when appropriate), and somewhat remarkably for Fidelity, fairly stable management. I like the fact that it's doing well without overloading on MBSs. It matches the market (but not the category) there, using VBTIX as a reference.

    Another core plus bond fund worth a close look is BCOIX. Similar profile, very low turnover, great bond fund company, lower cost, slightly better performance. $25K min. For less, there's the investor class shares BCOSX, with an added 12b-1 fee (all in, still just 0.10% more expensive than FTBFX).
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