Fidelity has expanded its model portfolio lineup for wealth management firms by launching two new all-ETF model portfolio suites.
Fidelity Target Allocation ETF Model Portfolios and Fidelity Target Risk ETF Model Portfolios are designed for different risk profiles with goals ranging from capital preservation to aggressive growth, the asset manager announced Thursday. The model portfolios are available on various platforms, including zero cost options such as Fidelity Managed Account Xchange Essentials (FMAX Essentials), Envestnet’s RIA Marketplace, 55ip and SMArtY.
The portfolios offer exposure to active and passive proprietary and third-party ETFs and to domestic equity, international equity and fixed income strategies. The Target Risk ETF model also incorporates liquid alternative ETFs for added diversification, Fidelity said.
“ETFs continue to be an increasingly attractive option for advisors due to their cost and tax efficiencies,” said Amanda Robinson, vice president for portfolio solutions at Fidelity Institutional. “These new model portfolios offer advisors a streamlined way to execute an ETF strategy while also meeting the evolving needs of their clients. Our goal is to help advisors better scale their practices so they can prioritize critical activities such as wealth planning, business development, and time with clients.”
Advisors continue to increase ETF allocations, with 53% of advisors’ portfolios incorporating the vehicle in last year's fourth quarter, compared with 44% in 2023, according to Fidelity's Portfolio Construction Insights. The number of investments in unique ETFs within Fidelity Custom Model Portfolios more than doubled from 2022 to 2024.
Fidelity’s exchange-traded lineup consists of 76 ETFs and exchange-traded products with about $117 billion in assets under management, including 30 actively managed equity ETFs, 13 fixed income ETFs, 13 equity factor ETFs and 11 passive equity sector ETFs, among others.
Image: Shutterstock
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.