Fidelity Investments® today announced the expansion of its model portfolio lineup for wealth management firms with the launch of two new all-ETF model portfolio suites. According to Fidelity’s Portfolio Construction Insights, advisors continue to increase their ETF allocations with 53% of advisors’ portfolios leveraging the vehicle as of Q4 2024, up from 44% in 2023. In fact, the number of investments in unique ETFs within Fidelity Custom Model Portfolios more than doubled1 between 2022 and 2024, further signaling amplified interest from advisors.
Fidelity® Target Allocation ETF Model Portfolios and Fidelity® Target Risk ETF Model Portfolios are designed for various risk profiles with goals ranging from capital preservation to aggressive growth. They are available on a variety of platforms, including zero cost options such as Fidelity Managed Account Xchange® Essentials (FMAX Essentials), Envestnet’s RIA Marketplace, 55ip, and SMArtY.
Aligned with Fidelity’s commitment to open architecture, these model portfolios offer exposure to a mix of active and passive proprietary and third-party ETFs as well as exposure to a variety of domestic equity, international equity, and fixed income strategies. The Target Risk ETF model also incorporates liquid alternative ETFs for added diversification2.
“ETFs continue to be an increasingly attractive option for advisors due to their cost and tax efficiencies,” said Amanda Robinson, vice president of 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.”
Since launching its first model portfolio in 2018, Fidelity has grown its turnkey model portfolio lineup by 120% to meet advisors’ increased interest in incorporating these vehicles in their practice.
This product launch is an extension of Fidelity’s commitment to meeting advisors’ evolving portfolio construction needs. For even more tailored investment approaches, Fidelity offers eight model-delivered separately managed accounts (SMAs) across domestic equity, sector, and international equity strategies through Fidelity Advisor SMAs. Fidelity also provides highly customizable solutions to advisors through custom model portfolios and Fidelity Institutional Custom SMAs.
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