Key insights
- The user is seeking advice on unwinding a Fidelity SMA Total Market Index with 350 positions and a 0.40 bps fee. Options include switching to a similar product with lower fees (0.12 bps) but 2500 positions, or a Russell 1000 index with 1000 positions and a 0.22 bps fee. The primary concern is minimizing transaction costs when the assets are eventually liquidated. The impact on US equities is slightly negative due to the potential for increased selling pressure during the unwinding process, although this is mitigated by the long-term
Help me UNWIND this direct index nightmare. Fidelity SMA Total Market Index
I am paying 0.40 bps
350 positions (Total Index)
Option 1: Get much lower fee 0.12bps but hold 2500 positions in a similar product. (Total Index)
Option 2: Get a fee of 0.22 bps but hold 1000 positions. (Russell 1000 index)
I dont plan on selling this, just give it to the kids who can dispose of it.
I am getting a lot of noise from many people that unwinding 2500 positions will be way worst than 1000 .. i dont know if I agree. Cant a robot do this in the future?
Help me choose and tell me why?