New Offering Includes Proprietary Customizable Models with Low-Cost Pricing and 90-Day Free Trial
With $30 Billion+ in Managed Direct Indexing Assets Today, Fidelity Reinforces Commitment to the Future of Simplified, Custom Investing
BOSTON–(BUSINESS WIRE)–Building upon its commitment to provide innovative solutions for investors managing their money through all market environments, Fidelity Investments® today introduced Fidelity Solo FidFoliosSM, an enhanced, fully digital brokerage experience that leverages fractional shares trading to bring a new direct indexing capability to do-it-yourself retail investors. The new platform allows investors to create their own custom index, either by designing one from scratch or selecting from thirteen thematic stock models built by Fidelity analysts and then adding or removing stocks or updating weights.
Fidelity Solo FidFoliosSM, which will be rolled out over the coming weeks, follows the April launch of Fidelity Managed FidFoliosSM, a fully digital, professionally managed direct indexing option available to retail investors with advanced tax management techniques. Together, these offerings continue Fidelity’s tradition of delivering innovative, personalized, and low-cost investing, seeking to provide investors with the peace of mind that comes with controlling your portfolio in a simplified way.
Paired with proprietary research, Fidelity Solo FidFoliosSM simplifies the process of building and managing a custom portfolio by allowing for rebalancing, purchases, and redemptions of an entire portfolio of stocks with just one click. Both Fidelity Solo FidFoliosSM and Fidelity Managed FidFoliosSM provide investment strategies that use fractional shares trading to make personalized investing more accessible and empowers clients to invest in what matters to them. Thematic stock models include cloud computing, cybersecurity, 5G future connectivity, electric vehicles and future transportation, clean energy, fintech, digital health, biotech and drug discovery, staples, utilities, REITs, quality income, and robotics and AI.
“Now more than ever, investors want the peace of mind of trading, monitoring, and rebalancing custom stock portfolios in a simple way,” said Robert Mascialino, head of Fidelity’s retail brokerage business. “With the ability to align to a specific theme or individual values, Fidelity Solo FidFoliosSM helps leverage the power of direct indexing to build a customized portfolio while simplifying how investors manage what they own.”
Investors choosing Fidelity Solo FidFoliosSM can start with as little as $1 per stock and select up to 50 stocks in each portfolio. After a 90-day free trial, the flat monthly fee is $4.99, aligned with the pricing transparency and value Fidelity investors have come to expect. Those who opt for Fidelity Managed FidFoliosSM can start with a $5,000 minimum investment, among the industry’s lowest for a direct-to-retail professionally managed direct indexing solution, available at a competitive management fee of 40 basis points.
Fidelity Managed FidFoliosSM, broke ground earlier this year with a digital professionally managed direct indexed solution. The managed offering, which uses Fidelity’s fractional shares trading to make managed direct indexing accessible to more investors, includes Fidelity’s always-on tax-smart investment strategies1 and provides access to multiple customizable investment options, including an environmentally-focused sustainable portfolio.
“When markets are volatile, we know tax management and easy rebalancing are important to investors,” said Mascialino. “We’ve created these offerings to help deliver additional choice for self-directed investors as they build diversified stock portfolios.”
About Fidelity Investments
Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $10.5 trillion, including discretionary assets of $4.0 trillion as of April 30, 2022, we focus on meeting the unique needs of a diverse set of customers. Privately held for over 75 years, Fidelity employs more than 58,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.
Investing involves risk, including risk of loss.
Fidelity Managed FidFolios℠ provides discretionary investment management for a fee. Fidelity Managed FidFolios℠ includes the Environmental Focus Strategy, the U.S. Large Cap Index Strategy, and the International Index Strategy. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FBS, and NFS are Fidelity Investments companies.
Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.
Fidelity Investments and Fidelity are registered service marks of FMR LLC.
Fidelity Brokerage Services LLC, Member NYSE, SIPC,
900 Salem Street, Smithfield, RI 02917
Fidelity Distributors Company LLC,
500 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,
245 Summer Street, Boston, MA 02110
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1 Tax-smart (i.e., tax-sensitive) investing techniques, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, primarily with respect to determining when assets in a client’s account should be bought or sold. Assets contributed may be sold for a taxable gain or loss at any time. There are no guarantees as to the effectiveness of the tax-smart investing techniques applied in serving to reduce or minimize a client’s overall tax liabilities, or as to the tax results that may be generated by a given transaction.
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