Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Portfolio > Investment VIPs

Fidelity Go Ranked Best Overall Robo-Advisor

Your article was successfully shared with the contacts you provided.

Fidelity Go, the digital advice platform of Fidelity Investments, is the single best robo-advisor among a group of 13 that have been in business for at least two years, according to The Robo Ranking, published by Backend Benchmarking.

The Fidelity robo charges an all-in 35 basis points (called a management fee because the funds have zero expense ratios) and features “quality financial planning tools” and easy navigation capabilities, with no minimum investment required, according to the report. It doesn’t, however, offer automated tax-loss harvesting, which many robos tout, nor advisors to chat with — only support — or strong transparency since all its investment funds are proprietary.

Fidelity Go’s performance for a balanced stock/bond portfolio in a taxable account for an investor in the top tax bracket topped all other ranked robos, with a 4.97% annualized return over the past two years, according to The Robo Report.

SigFig followed Fidelity as runner-up for the best robo, with the second best annualized performance, up 4.77% on an annualized basis over the past two years. But unlike Fidelity, SigFig offers automated tax-loss harvesting and access to human advisors for clients with at least $10,000 in managed assets. The robo, which has a $2,000 minimum for retail clients, has partnered with UBS and Wells Fargo on their digital retail offerings and has received financing from UBS as well as Eaton Vance and Bain Capital.

Fidelity Go and SigFig also placed first and second for Best Robo for Performance at Low Cost.

The performance of all 13 robos were gauged against a normalized benchmark for balanced stock/bond portfolios that corrected for the inherent advantage of portfolios with larger equity allocations.

Vanguard placed third for best overall ranking following Fidelity and SigFig, with an annualized 4.6% gain in performance over two years. It was the runner-up for Best Robo for Complex Financing Planning Needs and Best Robo from an Incumbent Financial Institution, after Fidelity.

Vanguard’s robo includes automatic aggregation, quality access and service quality products  and access to live advisors for a cost of 30 basis points, according to The Robo Report. Investors with more than half a million in assets can access a dedicated advisor; those with less can receive services from a team of advisors. The minimum investment for its robo is $50,000.

For a complete list of the robo rankings, check out the table below. Please note that although Personal Capital ranked as the Best Robo for Complex Financial Planning Needs, its overall score was among the lowest due to its high $100,000 minimum and 0.89% management fee coupled with low Sharpe Ratio and performance relative to a normalized benchmark.

— Related on ThinkAdvisor:


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.