Fidelity Investments announced recently they are internally testing a program called “Fidelity Go” that will be available to select clients next year. Right now, Fidelity Go is available to only a few hundred of Fidelity’s employees. In the next few months, Fidelity plans to have some clients test the program, and later there will be a full public introduction.
This means that Fidelity is joining the fast growing field of automated portfolio management services, also called robo-advisors. Like other competing products, Fidelity will ask clients to fill out online questionnaires about their investment goals and risk tolerance. Then Fidelity’s program would suggest a low-cost portfolio of investments. For the time being, the program is free, though it is expected to cost somewhere around 0.1 or 0.2 percent annually in time.
While a large portion of the portfolios will be investments that track market indexes, some money will go into Fidelity’s own actively managed mutual funds. Fidelity’s platform will use the company’s own products in many cases, but the firm will also use funds managed by BlackRock. BlackRock is the largest manager of ETFs, and BlackRock is a business partner of Fidelity.
In the past few years, Betterment and Wealthfront have gathered about $3 billion in assets. Schwab’s Intelligent Portfolios, which StockBrokers.com has blogged about, had collected $4.1 billion as of September 30 after launching in March.
For even more details about Fidelity’s new platform click here. StockBrokers.com will keep you posted as more updates come about Fidelity Go.