Fidelity Investments has launched new ETF model portfolios for wealth management firms.
The firm expanded its model portfolio lineup by adding two new ETF model portfolio suites. The latest offerings include Fidelity® Target Allocation ETF Model Portfolios and Fidelity® Target Risk ETF Model Portfolios.
The new model portfolios are designed for various risk profiles with goals ranging from capital preservation to aggressive growth, Fidelity said in a statement. The model portfolios provide access to active and passive Fidelity and third-party ETFs. They offer exposure to various domestic equity, international equity, and fixed income strategies. Additionally, the Target Risk ETF model also incorporates liquid alternative ETFs for added diversification.
Advisors Are Using More Model Portfolios
The model portfolios fill a need for advisors, as advisors have continued to increase ETF allocations in portfolios.
53% of advisors leverage ETFs within their clients’ portfolios as of Q4 of 2024, up from 44% in 2023, according to Fidelity. Furthermore, the number of investments in unique ETFs within Fidelity Custom Model Portfolios more than doubled between 2022 and 2024, highlighting the strong interest from advisors.
“ETFs continue to be an increasingly attractive option for advisors due to their cost and tax efficiencies,” Amanda Robinson, vice president of Portfolio Solutions at Fidelity Institutional, said in a statement. “These new model portfolios offer advisors a streamlined way to execute an ETF strategy while also meeting the evolving needs of their clients.”
Fidelity’s model portfolios are available on a variety of platforms. This includes zero-cost options such as Fidelity Managed Account Xchange® Essentials (FMAX Essentials), Envestnet’s RIA Marketplace, 55ip, and SMArtY.
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
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