That is 74% of ABS group and ABS group is only .37% of the fund's portfolio. IMO, an insignificant %.As I’m reviewing my 401k my work offers. I have 40% allocated to FXNAX Fidelity US bond Index Fund. I scrolled down to Asset Backed Sector Diversification of this fund, link below. This is where I’m confused. It says portfolio weight 73.78% on Car Loan and 18.77% on Credit Loan. Does this mean, if car loan and or credit loan were to default in mass, this fund’s value will go down significantly or even insolvent? This seems like a huge risk for an index fund that tracks bond. Am I misunderstanding this?
https://fundresearch.fidelity.com/mutua ... /316146356
Statistics: Posted by RetiredAL — Sun Dec 10, 2023 10:44 pm — Replies 2 — Views 84