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Fidelity recently (2016) created their robo-advisor service called Fidelity Go. In this article, you will find details about the investment portfolios Fidelity Go uses. You will also find their performance and instructions on how to implement the investment portfolios yourself.
Article Contents
- Robo Fidelity Go Portfolios, Simple And Solid Performers
- Description of Robo Fidelity Go investment portfolios
- Performance of Robo Fidelity Go investment portfolios
- Building the portfolio(s)
- Asset allocation for Robo Fidelity Go investment portfolios
- How we select the right ETFs
- Resources for the Robo Fidelity Go investment portfolios
- Suggestions for your next steps
- Conclusion
Robo Fidelity Go Portfolios, Simple And Solid Performers
Fidelity is a well know mutual fund provider. Fidelity is a privately owned company being the 4th largest in assets under management.
Fidelity is late to the robo-advisor world with their latest service Fidelity Go. Both Betterment and Wealthfront has a long headstart on Fidelity.
Fidelity has an excellent reputation to draw upon that they can use in marketing their new service.
Let’s take a look at their robo portfolios. Are they better than their competitors?
Description of Robo Fidelity Go investment portfolios
They have divided their US stock allocation into:
- Large-cap
- Mid-cap
- Small-cap
This is unusual because what we usually see is that a US Total Stock market allocation is used instead of breaking the allocation up. We also commonly see that when the Total Stock Market allocation is broken up, it is because the portfolio overweights small caps. Fidelity Go portfolios do not tilt towards mid-caps nor small caps in a meaningful way.
The slice and dice maneuver by Fidelity pays off slightly because they gain a 0.21% CAGR advantage over using a total stock market allocation. This is using their most aggressive portfolio.
However, all is not consistent in Fidelity Go land. Their slice and dice ninjitsu is only used for US stocks. Their international exposure is lumped into one asset class under Total International stock, which includes developed markets and emerging markets. We usually see the international exposure broken up into at least international developed and emerging markets asset class.
The bond portion of their portfolios is standard. They use muni for the taxable accounts and total bond market asset class for tax-sheltered accounts.
I am somewhat pleased not to see the trying-to-look-smart allocation to emerging market bonds that we so often see in robo advisor portfolios.
If you are interested in seeing how other robots structure their portfolio, take a look at the ones below.
In the asset allocation, you can see both taxable and tax-deferred portfolios for the Fidelity Go portfolios.
Performance of Robo Fidelity Go investment portfolios
| Name | Asset class count | Year to date | Return in 2019 | 10 year return | CAGR since 1989 (%) | Risk level | Expense ratio |
|---|---|---|---|---|---|---|---|
| Robo Advisor Fidelity GO Taxable Conservative | 7 | -4.04% | 9.8 | 4.61% | 5.65 | 1 | 0.06% |
| Robo Advisor Fidelity GO Taxable Moderate With Income | 7 | -5.38% | 12.37 | 5.63% | 6.33 | 1 | 0.06% |
| Robo Advisor Fidelity GO Taxable Moderate | 7 | -6.62% | 14.72 | 6.50% | 6.87 | 1 | 0.06% |
| Robo Advisor Fidelity GO Taxable Balanced | 7 | -7.87% | 17.07 | 7.35% | 7.38 | 2 | 0.06% |
| Robo Advisor Fidelity GO Taxable Growth With Income | 7 | -9.11% | 19.42 | 8.19% | 7.85 | 2 | 0.06% |
| Robo Advisor Fidelity GO Taxable Growth | 7 | -10.26% | 21.55 | 8.88% | 8.19 | 2 | 0.06% |
| Robo Advisor Fidelity GO Taxable Aggressive Growth | 6 | -12.04% | 24.99 | 10.05% | 8.76 | 3 | 0.06% |
| Robo Advisor Fidelity GO Tax-advantaged Conservative | 7 | -0.60% | 10.73 | 4.49% | 6.0 | 1 | 0.05% |
| Robo Advisor Fidelity GO Tax-advantaged Moderate With Income | 7 | -1.94% | 13.3 | 5.51% | 6.68 | 1 | 0.05% |
| Robo Advisor Fidelity GO Tax-advantaged Moderate | 7 | -3.53% | 15.55 | 6.38% | 7.19 | 1 | 0.05% |
| Robo Advisor Fidelity GO Tax-advantaged Balanced | 7 | -5.12% | 17.81 | 7.25% | 7.67 | 1 | 0.05% |
| Robo Advisor Fidelity GO Tax-advantaged Growth With Income | 7 | -6.70% | 20.07 | 8.10% | 8.11 | 2 | 0.05% |
| Robo Advisor Fidelity GO Tax-advantaged Growth | 7 | -8.54% | 22.01 | 8.81% | 8.38 | 2 | 0.05% |
| Robo Advisor Fidelity GO Tax-advantaged Aggressive Growth | 6 | -11.04% | 25.26 | 10.00% | 8.88 | 3 | 0.06% |
The portfolios have a respectable return.
Building the portfolio(s)
Below you can see the asset allocations for the portfolio(s). You can also see if the portfolio(s) has a socially responsible investing (ESG) variant portfolio. You can read more about socially responsible investing (ESG) investment portfolios in this post.
To build the portfolio(s) yourself, go to our best in class ETF page to see which ETF you should choose for a particular asset class. There you can also see which socially responsible investing ESG ETFs you should select.
Asset allocation for Robo Fidelity Go investment portfolios
| Name | Large Cap Blend | Mid Cap Blend | Small Cap Blend | Total World Stocks | Total Bond Market | Money Market | Short Term Munis | Intermediate Term Munis |
|---|---|---|---|---|---|---|---|---|
| Robo Advisor Fidelity GO Taxable Conservative | 11.48% | 1.12% | 1.40% | 6.00% | 0.50% | 29.50% | 50.00% | |
| Robo Advisor Fidelity GO Taxable Moderate With Income | 17.22% | 1.68% | 2.10% | 9.00% | 0.50% | 19.50% | 50.00% | |
| Robo Advisor Fidelity GO Taxable Moderate | 22.96% | 2.24% | 2.80% | 12.00% | 0.50% | 14.50% | 45.00% | |
| Robo Advisor Fidelity GO Taxable Balanced | 28.70% | 2.80% | 3.50% | 15.00% | 0.50% | 9.50% | 40.00% | |
| Robo Advisor Fidelity GO Taxable Growth With Income | 34.44% | 3.36% | 4.20% | 18.00% | 0.50% | 4.50% | 35.00% | |
| Robo Advisor Fidelity GO Taxable Growth | 40.18% | 3.92% | 4.90% | 21.00% | 0.50% | 4.50% | 25.00% | |
| Robo Advisor Fidelity GO Taxable Aggressive Growth | 49.20% | 4.80% | 6.00% | 25.00% | 0.50% | 14.50% | ||
| Robo Advisor Fidelity GO Tax-advantaged Conservative | 11.48% | 1.12% | 1.40% | 6.00% | 50.00% | 0.50% | 29.50% | |
| Robo Advisor Fidelity GO Tax-advantaged Moderate With Income | 17.22% | 1.68% | 2.10% | 9.00% | 50.00% | 0.50% | 19.50% | |
| Robo Advisor Fidelity GO Tax-advantaged Moderate | 22.96% | 2.24% | 2.80% | 12.00% | 45.00% | 0.50% | 14.50% | |
| Robo Advisor Fidelity GO Tax-advantaged Balanced | 28.70% | 2.80% | 3.50% | 15.00% | 40.00% | 0.50% | 9.50% | |
| Robo Advisor Fidelity GO Tax-advantaged Growth With Income | 34.44% | 3.36% | 4.20% | 18.00% | 35.00% | 0.50% | 4.50% | |
| Robo Advisor Fidelity GO Tax-advantaged Growth | 40.18% | 3.92% | 4.90% | 21.00% | 25.00% | 0.50% | 4.50% | |
| Robo Advisor Fidelity GO Tax-advantaged Aggressive Growth | 49.20% | 4.80% | 6.00% | 25.00% | 14.50% | 0.50% |
How we select the right ETFs
There are a lot of ETFs out there. Most of them can be discarded because:
- They are too expensive
- They hold too few assets and are therefore too illiquid
- They do not meet the criteria for representing the asset class they are supposed to mirror.
We have carefully selected an ETF for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?
If you are a European investor you need to buy European ETFs. We list 47 best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).
As of 2020 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social and corporate governance issues.
You can find the socially responsible investing ESG ETFs in the same article.
Resources for the Robo Fidelity Go investment portfolios
Check out the Fidelity Go website
Fidelity has a few podcasts. Some are okayish.
Get deeper under the skin of Fidelity with our Target Date coverage of Fidelity’s target-date funds. You can find that here.
Suggestions for your next steps
Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone
If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful. Rebalancing your portfolio lowers your risk and may even provide higher returns in the long run.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool
Conclusion
What are your thoughts on Fidelity’s Go portfolios?
