Fidelity Robo Advisor Review: A Comprehensive Look at Services

Fidelity's robo advisor, known as Fidelity Go, offers a range of services designed to help you manage your investments with ease.

Fidelity Go has a low minimum balance requirement of just $10, making it a great option for those just starting out or with limited investment capital.

The platform offers a diversified portfolio of ETFs, which can be tailored to your risk tolerance and investment goals.

Fidelity Go also charges a low management fee of 0.35%, which is lower than many other robo advisors on the market.

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Fidelity's robo-advisor product has its advantages and disadvantages. Here are some key points to consider:

Fidelity Go doesn't charge account minimums, advisory fees for accounts below $25,000, transaction costs, or brokerage fees. This makes it a low-cost option for investors.

The platform upholds a fiduciary duty, which means it puts the client's interests first. This is a significant advantage over other investment options.

However, Fidelity Go doesn't offer human interaction unless you reach a specific account value, and it doesn't provide financial planning. This may be a drawback for investors who value personalized advice.

Here are some key pros and cons of Fidelity Go in a table format:

Overall, Fidelity Go is a solid option for investors who want a low-cost, low-maintenance investment solution. However, it may not be the best choice for those who value personalized advice or want more control over their investments.

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Fidelity Go is a great option for those who want to start building a portfolio with minimal hassle. No account minimum is required to get started.

If you have an account valued below $25,000, you won't be charged any advisory fees. This is a huge perk for those just starting out.

You also won't have to worry about transaction costs or brokerage fees. This means you can invest without breaking the bank.

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Fidelity Go upholds a fiduciary duty, which means they're required to act in your best interest. This gives you peace of mind knowing your investments are being managed with care.

Here are some of the key benefits of Fidelity Go at a glance:

Free management is available for balances under $25,000, which is a great way to save money on investment management.

When using Fidelity Go, you'll want to be aware of a few limitations.

One con is that human interaction is limited, unless you have a specific account value. This means you won't be able to get personalized advice or guidance from a human advisor.

Another con is that Fidelity Go doesn't offer financial planning, so you'll need to look elsewhere for comprehensive financial guidance.

You'll also be limited in your investment strategies, as Fidelity Go builds a portfolio using only in-house mutual funds.

Here are some specific cons to consider:

Fidelity Go's fee structure is straightforward: you won't pay any advisory fees if you have a balance below $25,000.

The firm charges a yearly charge of 0.35% AUM once your account reaches $25,000. This is a competitive pricing structure, especially when you consider that there are no ongoing mutual fund fees.

Here's a breakdown of the fees:

This means you can save money on fees, even with the slightly higher advisor fee for higher balances.

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Fidelity Go's pricing model is straightforward and affordable. You won't pay any advisory fees if you have a balance below $25,000.

The service uses a tiered pricing structure, with accounts up to $25,000 being managed without a fee. This is a competitive pricing structure, especially when you consider that there are no ongoing mutual fund fees.

Here's a breakdown of the fees:

Your account management fee is calculated on a quarterly basis and payment is deducted automatically from your account. This makes it easy to keep track of your fees and stay on top of your account management.

Saving on taxes is a big deal, and Fidelity Go has a strategy to help you do just that. They prioritize tax-advantaged investments in taxable accounts.

One way they do this is by choosing municipal bond funds for the bond allocation instead of corporate bonds. This can make a big difference in your tax bill.

By avoiding tax-loss harvesting, Fidelity Go's algorithm doesn't try to realize losses to offset gains elsewhere in the portfolio. This might not be the best approach for everyone, but it's a deliberate choice that helps them keep costs low.

Overall, Fidelity Go's approach to taxes is all about making smart investment choices that save you money in the long run.

Fidelity Go's investment philosophy is based on passive securities, such as index funds, ETFs, or mutual funds, which are more affordable than human managers. These securities are commonly used by robo-advisors.

The company primarily invests in mutual funds provided by Fidelity, holding a mix of both stocks and bonds. Fidelity says that it invests client portfolios based on information provided, including risk appetite, short- and long-term goals, and overall timetable.

Fidelity Go's main strategy to ensure your portfolio stays within its desired risk level is rebalancing, which is done at a threshold level based on your assigned portfolio. This process is triggered when the investment allocation drifts outside certain parameters, and a rebalance is triggered to reallocate your money back to the initial portfolio risk level.

Automatic rebalancing is a key feature of Fidelity Go, and it's done without the option to request a rebalance. However, you can adjust your portfolio risk level at any time.

Here are the key portfolio management features of Fidelity Go:

Fidelity Go also has a feature called Smart Shift, which moves your portfolio to a more conservative allocation as the target date approaches.

Fidelity Go's account services are designed to help you achieve your investment goals in a streamlined and efficient way. The platform offers a decisioning tool that helps you determine how to balance contributions to multiple accounts while staying on track to reach your goals.

The deposit process is automated, and your contributions are invested in a portfolio best aligned with your timeline without requiring individual trades or market timing. This approach is ideal for those with straightforward investment goals.

One nice feature of Fidelity Go is the monthly and annual updates on your goal progress, which ensures you're on track as your situation changes. You can also link external investment accounts for a more holistic view of your financial situation.

Fidelity Go's goal tools do not factor in external accounts for planning calculations, so keep that in mind when using the platform. However, this feature still provides a valuable overview of your financial situation.

Here are the key account services offered by Fidelity Go:

Portfolio management is a critical aspect of investing, and Fidelity Go has a robust system in place to ensure your portfolio stays on track. Automatic rebalancing is a key feature, triggered at a threshold level based on your assigned portfolio, to reallocate your money back to the initial portfolio risk level.

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Rebalancing is especially important as the market changes over time, and Fidelity Go's system is designed to adapt to these changes. You can adjust your portfolio risk level at any time, but you can't request a rebalance.

Tax optimization is another key component of Fidelity Go's portfolio management. While tax-loss harvesting is not offered, the service places tax-advantaged funds in taxable accounts to help enhance your tax situation over time.

Here are the key portfolio management features of Fidelity Go:

As your goal's target date approaches, Fidelity Go's Smart Shift feature moves your portfolio to a more conservative allocation. This feature is optional, and you need to opt into it.

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Fidelity Go offers a range of investment options, but it's essential to understand what's available before you get started.

You can invest in mutual funds through Fidelity Go, which is a great option for those looking to diversify their portfolio.

The platform does not offer individual stocks, fixed income, or REITs, so you'll need to consider other options if you're interested in these types of investments.

If you're looking for socially responsible or ESG options, Fidelity Go is not the best choice, as these types of investments are not available.

You can also consider other investment platforms that offer a wider range of options.

Here are the available asset options through Fidelity Go:

A fiduciary is someone who has a duty to act in the best interest of another party, and Fidelity Go's parent company, Strategic Advisers LLC, is an RIA with the SEC, which means it must uphold this duty.

Fidelity Go's employees are also IARs, which stands for Investment Adviser Representatives, and they must follow high ethical standards to avoid conflicts of interest.

RIAs like Strategic Advisers LLC are required to put their clients' needs first, which is a key characteristic of a fiduciary.

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Fidelity's robo advisor offers a user-friendly interface that makes it easy to get started with investing. The platform's intuitive design allows customers to create an account and begin investing in just a few minutes.

The minimum investment requirement for Fidelity's robo advisor is $100, making it accessible to a wide range of investors. This low barrier to entry can be a significant advantage for those new to investing.

Fidelity's robo advisor offers a range of investment portfolios, including socially responsible and income-focused options. These options cater to different investment goals and risk tolerances, providing customers with flexibility and choice.

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When you need help with your Fidelity account, don't worry - they've got you covered.

You can reach out to a customer service representative through various channels, including a phone line that's available 24/7.

Their Virtual Assistant is also available 24/7, and can be accessed through the company's contact page.

For more in-depth support, live chat is available Monday through Friday from 8 a.m. to 10 p.m. ET, and Saturday and Sunday from 9 a.m. to 4 p.m. ET.

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If you have a pressing question, you can also try their high-level FAQ page, which is a great resource for quick answers.

But if you're looking for personalized advice, Fidelity offers human financial planners who are available for unlimited 30-minute calls - just be sure your account balance is over $25,000.

Here's a quick rundown of Fidelity's customer service options:

Fidelity Go makes it incredibly easy to get started, with a user-friendly interface that guides you through a series of prompts to determine your investment goals.

These prompts are designed to take the guesswork out of investing, providing you with a personalized investment strategy based on your answers.

The investment strategy is tailored to your specific needs and goals, making it feel more like a partnership with a financial advisor than a solo endeavor.

Overall, Fidelity Go's usability is a major advantage, making it accessible to investors of all experience levels.

When using Fidelity Go, you'll appreciate the robust security features that come with the platform. Two-factor authentication is available, adding an extra layer of protection to your account.

Biometric entry, which includes fingerprint and face recognition, is also an option, making it easy to log in securely. This feature is especially convenient for those who have trouble remembering passwords.

The Securities Investors Protection Corporation (SIPC) covers Fidelity Go, protecting your funds in case the brokerage becomes financially troubled. This coverage is a significant advantage for investors.

The SIPC provides an additional layer of protection, giving you peace of mind when investing.

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Investopedia's rigorous review process ensures that their robo-advisor reviews are unbiased and comprehensive. They sent a 64-question survey to 21 companies, including Fidelity, and verified the responses through online research and conversations with each company.

To choose the best robo-advisor, Investopedia developed a quantitative model that scores each company across nine major categories and 59 criteria. The score is a weighted average of the criteria, with categories such as Goal Planning, Portfolio Contents, and Fees making up a significant portion of the overall score.

Fidelity Go can be compared to other top robo-advisors offered by brokerage firms like Charles Schwab and Vanguard. However, it's essential to remember that investing in digital assets is highly speculative and volatile, and only suitable for investors who can bear the risk of potential loss.

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When choosing a robo-advisor, consider the options offered by top brokerage firms like Charles Schwab and Vanguard, which are comparable to Fidelity Go.

These firms offer robo-advisors that are similar in functionality to Fidelity Go, making them worth considering for investors looking for a low-cost, automated investment experience.

Charles Schwab's robo-advisor is a notable option, with no management fees for accounts under $5,000, making it a great choice for small investors.

Vanguard's robo-advisor, on the other hand, offers a range of low-cost index funds and ETFs, allowing investors to create a diversified portfolio with minimal fees.

By considering these comparable options, investors can make an informed decision about which robo-advisor best meets their needs and goals.

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Our team of researchers sent a digital survey with 64 questions to each of the 21 companies we included in our rubric. This comprehensive data collection process took place from January 8 to February 9, 2024.

We verified the survey responses and collected any missing data points through online research and conversations with each company directly. This ensured that we had a complete and accurate picture of each robo-advisor.

We developed a quantitative model that scored each company based on nine major categories and 59 criteria. This model helped us determine the best robo-advisors in the market.

The score for each company's overall star rating is a weighted average of the criteria, with each category carrying a different percentage weight. Here's a breakdown of the categories and their corresponding weights:

We also had the opportunity to perform hands-on testing with many of the companies we reviewed, allowing us to gain a deeper understanding of their features and performance.

To create a Fidelity Go account, simply visit the company's page and click the "Get Started" button. This will prompt you to answer a set of questions to help Fidelity understand your investment goals and preferred strategy.

You can start with as little as $10 to invest, and there's no account minimum fee. However, if your account balance exceeds $25,000, you'll be charged a 0.35% annual fee.

The account setup process is straightforward, and you can even view your proposed portfolio before funding it. This allows you to see how your money will be invested and get an idea of how it will grow over time.

Fidelity Go offers 14 different risk levels, so you can choose the level that best suits your comfort and investment goals. The platform is also available on both Android and iOS devices, making it easy to manage your account on the go.

Here's a quick rundown of the account setup process: