|Expense Ratio (net)||0.47%|
|Category||Muni National Short|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Above Average|
|Beta (3Y Monthly)||0.48|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Dec 24, 1986|
Note: This article is part of Morningstar's 2019 Portfolio Tuneup week. A version of this article appeared on Sept. 11, 2018. Tightening up all of the costs in a portfolio is one of the best ways to enhance your take-home return.
Want to make sure your portfolio's risk level is in line with what you can handle? You wouldn't want a portfolio composed entirely of low-risk stock and bond funds, because risk protection usually comes at the expense of return potential.
This article was originally published in the August 2018 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website. In the past, I've written about hidden gems so that you can find good funds you might have overlooked and funds with small asset bases that have plenty of room to grow.
Thus, despite Fidelity's recent launch of two new zero-cost index funds that are rivals to existing holdings in the tax-efficient portfolios, my review of my Fidelity Tax-Efficient Retirement Saver Portfolios didn't result in any changes.
My tax-efficient Bucket portfolios for Fidelity investors provide a worthy case study. Part of the reason is philosophical: I've designed my tax-efficient portfolios to be ultra-minimalist, low-maintenance, and low-turnover, because there's no better way to trigger tax bills than to engage in frequent trading.
My initial Fidelity bucket portfolios--conservative, moderate, and aggressive--were geared toward investors in tax-deferred accounts like IRAs. With healthy allocations to bonds, including stakes in tax-unfriendly categories like TIPS and commodities, these portfolios are not going to be particularly tax-efficient over time. The firm's municipal-bond lineup has long been one of Morningstar's favorites, featuring reasonable costs, experienced management, and strong analytics.
MFS Value MEIAX was raised to Gold from Silver for longtime lead manager Steven Gorham's sound execution of a straightforward process. Hartford Equity Income HQIYX was upgraded to Silver from Bronze for its reliability under Wellington Management's Michael Reckmeyer. The fund treads heavily in yield-rich sectors such as utilities and telecom relative to peers, but Reckmeyer can also be contrarian, adding to out-of-favor but solid stocks.