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Fidelity Go operates as Fidelity Investment’s robo-advisor service, giving hands-off investors the ability to automate their investing. Fidelity Go recommends and builds portfolios made up of mutual funds based on your answers to just a few, quick questions. From there, it monitors your investments and rebalances when necessary.
While Fidelity Go may be lacking in some areas, such as tax optimization and the range of account types offered, it shines when it comes to offering low fees, communication with its clients and the assurance of investing with a big-name brokerage.
| Ninja Column 1 | Ninja Column 2 |
|---|---|
| Best for... |
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| Minimum investment | $0 |
| Management fee | $0 to 0.35% per year, depending on your account balance |
| Accounts offered | Individual taxable, joint taxable, Traditional IRA, Roth IRA, rollover IRA |
| Access to human advisors | No |
| Banking services | No |
How much would you like to invest?
Similar to other robo-advisors, Fidelity Go begins its process of building your custom portfolio by asking you a few questions about yourself and your financial targets. Next, it will recommend an investment strategy based on your answers to those questions, which includes a recommended asset allocation and charts showing the potential value of your investments over time.
Upon selecting your investment strategy (whether it’s the one Fidelity recommended for you or one of your own choosing) and funding your account, Fidelity Go will build your portfolio by purchasing the recommended investments, commission-free.
After your portfolio is put into place, Fidelity Go actively monitors it and rebalances it when necessary. Fidelity Go allows you to change your investment strategy whenever you’d like — although you are not allowed to buy and sell individual investments within your account.
While Fidelity Go does not charge a minimum fee, you will need to fund your account with at least $10 to begin investing. Additionally, Fidelity Go allows you to set up recurring monthly deposits to your investment account.
| Ninja Column 1 | Ninja Column 2 |
|---|---|
| Investment options | Mutual funds |
| Tax-loss harvesting | |
| Portfolio rebalancing | |
| Smart Beta | |
| Socially-Responsible Investing | |
| Fractional shares |
In terms of asset allocation, Fidelity Go invests in a combination of mutual funds, which typically hold asset classes including domestic stocks, foreign stocks, bonds or other short-term investments. This is notably different from many other robo-advisors that opt to invest in solely ETFs.
Specifically, Fidelity Go invests primarily in what it calls Fidelity Flex mutual funds, which are a selection of Fidelity mutual funds that have zero-expense ratios, and include proprietary active and passively managed funds. Funds are selected for you based on factors such as investment philosophy, risk and return characteristics, assets under management and tax efficiency.
Currently, Fidelity Go offers the following investment strategies:
Conservative:
Moderate with income:
Moderate:
Balanced:
Growth with income:
Growth:
Aggressive growth:
While Fidelity Go does prioritize investing in Fidelity Flex funds that are tax-efficient, it does not deploy other tax minimization strategies, such as tax-loss harvesting.
Fidelity Go features a tier-based pricing structure, with your rate based on your account balance. It does not change any trading fees, transaction fees or rebalancing fees.
Currently, its pricing structure is as follows:
| Account balance | Fee |
|---|---|
| $0-$9,999 | $0 |
| $10,000-$49,999 | $3 per month |
| $50,000+ | 0.35% per year |
The centerpiece of Fidelity Go is that it primarily invests your money in Fidelity Flex funds. These are a curated selection of mutual funds that have zero-expense ratios, no management fees and typically never have fund expenses — all of which is somewhat of a rarity for mutual funds. Fidelity Flex funds include both proprietary active and passively managed funds, spanning a number of common asset classes including stocks and bonds.
One strength of Fidelity Go is the constant communication it provides to its clients. In addition to sending out monthly emails, which include portfolio summaries and activity information, it also conducts an Annual Strategic Review. During the review, you will let Fidelity know of any changes that may have occurred that year, and in response, it may suggest a different investment strategy.
While many robo-advisors rely solely on technology and an algorithm to monitor and rebalance clients’ portfolios accordingly, Fidelity Go adds a human touch, as the daily management of your portfolio is performed by human financial experts at Strategic Advisors LLC, a registered investment advisor. This is a feature certainly worth highlighting, as investors will receive the convenience of a robo-advisor with the added assurance of human money management.
Fidelity Go is accessible via the Fidelity Investments app, which is available for iOS and Android. While this is more of a feature of Fidelity Investments itself (and not specifically Fidelity Go), the app is rich in helpful resources and tools, especially for beginner investors. For example, it includes detailed and up-to-date information about the markets (including top gainers and losers), relevant news articles and resources on investing strategies.
As mentioned above, Fidelity Go does not have its own app, but is instead available on the Fidelity Investments app, available on Android and iOS. The app is rich in resources and tools, including up-to-date information on the markets and your portfolio, and it provides easy access to your Fidelity Go account. Fidelity Go is also available via desktop.
In terms of customer service, Fidelity Go offers assistance over the phone at 800-343-3548. You can also reach out through a Live Chat functionality on its website that is available Monday through Friday, 8 a.m. to 6 p.m. EST.
Fidelity Investments takes a robust approach to security. It features two-factor authentication, where it requires you to type in a security code that is sent via text or verify your identity through a phone call before allowing you to log into your account. Additionally, it allows you to lock your accounts instantly, protecting you from unauthorized transfers, and it provides a security text alert feature and voice recognition technology for added layers of security.
All Fidelity Investment accounts have SIPC coverage, meaning in the case that Fidelity Go were to fail, up to $500,000 of your account (including $250,000 in cash) is protected and insured.
While Fidelity Go may lack some of the more innovative tools that its robo-advisor peers tend to boast — like automatic round-up features and values-based investing options — it is still a solid choice if you are looking for a standard robo-advisor with minimal fees.
With no management fee for accounts up to $10,000, mutual funds with zero-expense ratios and no minimum deposit required, Fidelity Go is an excellent option for new investors who want to save on fees while still receiving a quality robo-advisor from a big-name brokerage. Additionally, Fidelity Go is a standout pick for investors who are wary of a completely automated experience and would still like a little bit of human management intertwined.
Seasoned investors who want to take a more hands-on approach to investing, though, and those who are looking for a more expansive list of investments to select from, will likely have better luck looking elsewhere.
Three months free for new customers who are referred by an existing Betterment account holder
Fidelity Go and Betterment are relatively similar, as they both offer the basics of robo-advising services like recommended investment portfolios, diversified asset allocation and rebalancing. That being said, there are a few differences in the details.
While their fees are comparable, if you want to optimize tax minimization, Betterment is the better fit, as it offers a slew of tax minimization strategies (such as tax-loss harvesting) that Fidelity Go notably lacks. Also, if you are interested in socially-responsible investing, Betterment has socially-responsible investment options that Fidelity Go simply does not.
However, if you do not want to hand full control over to a robot, Fidelity Go offers the added benefit of having your account monitored and rebalanced by an actual team of financial experts. Before deciding between the two, consider which priorities matter most to you.
The most notable difference between Fidelity Go versus Schwab Intelligent Portfolios is their account minimums. While Fidelity Go does not have a minimum (although it will not actually start investing your funds until you reach the $10 threshold), Schwab Intelligent Portfolios requires a hefty minimum of $5,000, which automatically limits the eligibility of its clientele.
Schwab Intelligent Portfolios does offer a wider selection of investments to choose from — including 53 different ETFs that span over 20 expanded asset classes — as well as a larger array of available accounts. If you want more options, the minimum may be worth it.
If you are simply looking for a no-frills robo-advisor, though, Fidelity Go offers a competitively similar service for a much lower minimum, low fees and the added benefit of having your money managed by real humans, making Fidelity the true winner between these two.
All information included in this profile is accurate as of 10/28/2020. For more information, please consult Fidelity Go’s website.
The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.
Sarah BergerSarah Berger is a former writer at LendingTree, where she covered personal finance, specifically focusing on challenges and opportunities facing millennials. Before joining LendingTree, she was a writer for CNBC and Bankrate.
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