Fidelity has announced the launch of Fidelity Go, a robo advisory solution for “digital first” investors. Fidelity Go was designed in collaboration with younger, digitally-savvy investors. It is being billed as a combination of a professionally managed portfolio, an easy-to-use digital dashboard, integration with Fidelity’s broader investment tools, and a low all-in cost. StockBrokers.com first blogged about Fidelity Go back in December 2015 when internal testing began, and now Fidelity has gone public with Fidelity Go.
Notable Fidelity Go Features Include:
-Portfolios constructed, monitored, and rebalanced over time by investment professionals-not solely an automated robo algorithm- available at a minimum investment of $5,000.
-Transparent advisory fee and underlying investment portfolios that are some of lowest cost offerings in the market. Current all-in costs, which do include the advisory fee and underlying fund fees, range from 0.35 percent to 0.40 percent.
-A responsive design. Easy access with smartphones, tablets, and desktops to deposit/withdraw funds, monitor investment goals, and receive alerts.
“Fidelity Go makes professionally managed portfolios broadly accessible by helping people move from saving to investing quickly and efficiently, with costs starting at approximately $20 a year,” said Rich Compson, head of managed accounts at Fidelity.
To get started, investors answer seven or more questions about their goals, current financial situation and risk tolerance. Fidelity Go will then suggest an investment strategy based on the investor’s needs and preferences. Investors are able to change the suggestion if they wish.
Geode Capital Management, who Fidelity has partnered with since 2003, invests, monitors and manages the portfolios over time.
Investors have full transparency into their outcomes and investments at all times.
StockBrokers.com has noted the fast increase in automated financial advice products over the past two years. While late to the party, Fidelity Go has clean offering and may very well be quick to accumulate assets.
For a deeper look at Fidelity Go, we recommend reading the fantastic analysis posted by RIABiz yesterday, Fidelity launches new robo as Schwab’s hits $8.2 billion in assets.
Click here to read the full Fidelity press release.