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FYI: (Click On Article Title At Top Of Google Search() (This is a follow-up article0. Targeting digitally savvy beginner investors, Fidelity has launched its robo-advisory service, Fidelity Go. The portfolios it creates are heavy on Fidelity’s own index mutual funds, plus exchange-traded funds from BlackRock’s iShares. Regards, Ted https://www.google.com/#q=Fidelity+Launches+Robo-Advisor+Barron's
Fidelity got to be more competitive in light of many robo advisors who much less. What are their unique advantages compared to say Betterment and Wealhfront who charge 0.25% at the asset level above $10K?
Good question Sven. What is unique? I'm in the Schwab robo, Intelligent Portfolio. It charges zero%. With a 60% equity mix it has made 9.5% YTD. Pretty good return on a diversified portfolio. It charges no fees because it uses mostly Schwab ETFs along with holding the cash portion in Schwab MM. If Fidelity is going to use Fidelity index funds, why the .35% on top of that?
@MikeM, exactly! Maybe that is the next move in case this approach is not attracting new asset. Fidelity is now offering $ for bringing in new asset.
Nice to know Schwab is offering this. Vanguard offers a hybrid approach with robo and a live advisor. They charge 0.30% while using their ETFs and index funds.
Out of curiousity, I took the Fidelity and Schwab robo-advisor interviews. Without going into detail, its apparent the inputs their algorithms use in developing a proposed allocation are way too superficial and do not adequately understand a client's needs.
Edmond , I don't see the robo portfolios as being a robo "adviser". They are set up to look fairly generally to your "long term" goals. They are set up to have decent relative returns over a market cycle with less volatility due to diversification. They questionnaire use general questions on risk, age and time horizon and output a general portfolio allocation. You don't have to use that suggested allocation though. I didn't. I used personal 1 on 1 advice that looked at all assets of savings, social security and pensions. The portfolio was adjusted based on that input.
I worked with a local Schwab adviser to look at longer term retirement needs. The 60% equity portfolio I chose fit my long term goals considering other assets not in that retirement account. The portfolio ETF selections were robo, but it is still important to get advice that looks at the whole.
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Nice to know Schwab is offering this. Vanguard offers a hybrid approach with robo and a live advisor. They charge 0.30% while using their ETFs and index funds.
Out of curiousity, I took the Fidelity and Schwab robo-advisor interviews. Without going into detail, its apparent the inputs their algorithms use in developing a proposed allocation are way too superficial and do not adequately understand a client's needs.
I worked with a local Schwab adviser to look at longer term retirement needs. The 60% equity portfolio I chose fit my long term goals considering other assets not in that retirement account. The portfolio ETF selections were robo, but it is still important to get advice that looks at the whole.