Fidelity is one of the largest financial services companies that offers robo-advisor services to automatically invest client assets. Their automated investing platforms help investors build diversified portfolios using low-cost exchange-traded funds (ETFs). This article will analyze Fidelity’s robo-advisor service, the ETF holdings in their automated portfolios, and the price performance of these ETFs.
Fidelity Go robo-advisor invests in 10 BlackRock iShares ETFs covering major assets
Fidelity Go is the robo-advisor platform provided by Fidelity. The portfolios constructed by Fidelity Go utilize 10 BlackRock iShares ETFs to gain broad exposure across stocks, bonds and other major assets. These low-cost iShares ETFs track market indexes like the S&P 500, allowing investors to efficiently match market performance.
Fidelity’s robo-advisor ETF portfolios have outperformed benchmarks over 1, 3 and 5 years
An analysis of Fidelity Go’s ETF holdings shows that their automated portfolios have outperformed comparable benchmarks over the short and longer term time horizons. Over the past 1, 3 and 5 year periods, Fidelity Go’s portfolios have beat out blended benchmarks made up of the same asset allocations.
Fidelity ETF prices have declined in 2022 along with the broader market downturn
Like most investments, the ETFs held by Fidelity’s robo-advisor have seen falling prices in 2022 amid high inflation and rising rates. However, these broad-based ETFs are expected to recover over the long run as the economy and markets stabilize going forward.
Fidelity offers an automated investing option through Fidelity Go that constructs diversified ETF portfolios. The ETFs cover major asset classes and have historically outperformed relevant benchmarks. While ETF prices have dropped in 2022, long-term performance remains competitive.