Fidelity Investments: Performance, Strategies, And Future Outlook

Fidelity Investments is a well-rounded brokerage firm that offers a wide range of investment options for both beginner and active investors. With no commissions on stock or ETF trades, a large selection of no-transaction-fee mutual funds, and top-notch research tools, Fidelity has established itself as a leading player in the industry.

Fidelity offers a variety of account types, including brokerage accounts, 401(k) plans, and individual retirement accounts (IRAs), providing flexibility for investors with different financial goals and needs. The company also has a strong reputation for its mutual funds, with a large selection of no-expense-ratio index funds that are ideal for long-term investment strategies.

In addition to its investment offerings, Fidelity provides extensive educational resources and research options for investors of all levels. The company's trading platforms, such as Active Trader Pro, offer advanced features and customisation options for more experienced traders.

Fidelity's customer service and support are also highly regarded, with 24/7 phone support, email, live chat, and a network of physical branches available for in-person advice.

Overall, Fidelity's combination of low costs, robust investment options, and user-friendly platforms make it a compelling choice for individuals seeking to grow their wealth through various investment strategies.

Strong financial and operating performance

In 2023, Fidelity Investments had a year of strong financial and operating performance. This success was enabled by their continued investments in people and technology, which delivered outstanding experiences to their growing customer base.

Fidelity's commitment to innovation and customer satisfaction is evident in their launch of six new competitively priced active thematic ETFs, as well as their expansion of alternative investment products with the introduction of the Fidelity Multi-Strategy Credit Fund. They also developed new digital experiences, such as Pancake Empire Tower Tycoon and Bloom-o-rama, to educate the next generation about finance and healthy money habits.

Fidelity's performance has been recognised by several prestigious rankings and awards. They were ranked as the best for clients seeking guidance from investment professionals by J.D. Power, the best overall online broker platform by Money.com, and the best overall for full-service brokers by Kiplinger. Barron's ranked them as number one in their Best Online Broker ratings for 2023, and Forbes recognised them as one of the Best Employers for New College Grads.

Fidelity's strong performance is further demonstrated by their ability to fill over 2,400 jobs, including more than 600 technology-specific roles, and their internship programme that welcomed over 1,140 interns in June 2023. This focus on hiring and talent development ensures that they have the necessary expertise and resources to continue delivering exceptional services to their customers.

Looking ahead, Fidelity is well-positioned to maintain its strong financial and operating performance by leveraging its investments in people and technology, as well as its innovative digital tools and live channel support.

New products and services

Fidelity Investments is committed to challenging the status quo and harnessing innovation to meet the distinct and evolving financial needs of its customers. The company has introduced several new products and services in recent years, including:

• Fidelity Go: An advisory solution designed for investors seeking a trusted team to manage their money through a simple and efficient digital experience.
• Amazon's Echo integration: Amazon Echo uses artificial intelligence and allows for hands-free, voice control to ask "Alexa" questions and ask Fidelity to get equity quotes and market updates.
• Student Debt Program: Includes a tool for exploring repayment options and a life-changing benefit to help employees pay off student loans faster.
• Fidelity WealthCentral: The industry's first web-based wealth management platform, which combines portfolio management, customer relationship management, financial planning, portfolio rebalancing, and trading.
• Fidelity ZERO Funds: The industry's first zero-expense-ratio self-indexed mutual funds for individual investors.
• Stocks By The Slice: A program aimed at investors wishing to capitalize on fractional-share ownership and micro-investing, making investing more accessible and affordable.
• Fidelity Digital Asset Services: Handles cryptocurrency custody and trade execution for institutional investors.
• Fidelity Freedom Funds: A simple approach for retirement investors whose mix of stocks and bonds becomes more conservative over time as the target date approaches.
• Fidelity Youth Account: An investment account designed for teenagers (ages 13 to 17) that offers access to stocks, ETFs, and fractional shares. The account also puts risky investments and strategies like options and margin trading off-limits.
• Fidelity Crypto platform: Allows investors to trade Bitcoin and Ethereum coins.
• Fidelity Retirement Income Advantage: A comprehensive service that helps investors plan and manage their finances throughout retirement.

Customer innovation highlights

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company is one of the largest asset managers in the world, with $5.8 trillion in assets under management and $15.0 trillion in assets under administration as of September 2024.

Fidelity has consistently been recognised for its commitment to innovation and customer-centricity, receiving numerous accolades for its products and services. Here are some highlights of their customer innovation:

• Straightforward Pricing: Fidelity offers zero commissions on stock, ETF, and options trades, with no account fees, transfer fees, or other hidden charges. This transparent pricing structure has earned them recognition from NerdWallet, StockBrokers.com, and Kiplinger.
• Security and Protection: The company prioritises the security and protection of its clients' information and assets, utilising the latest technology to provide peace of mind.
• Expert Insights and Investing Tools: Fidelity provides easy-to-use tools and the latest professional insights from their team of representatives, making it simple for customers to make informed investment decisions.
• Mutual Funds: Fidelity has a strong reputation for its diverse range of mutual funds, including the Fidelity Zero index funds, which have no expense ratio or minimum investment requirement, saving customers a significant amount of money.
• Educational Resources: Fidelity offers extensive educational resources and research options for investors of all levels, from beginners to active stock traders, helping them make informed decisions and improve their financial literacy.
• Trading Platforms: Fidelity provides multiple trading platforms, including Fidelity.com and Active Trader Pro, to cater to different levels of investors. Active Trader Pro, in particular, offers advanced features such as customisability, real-time data, comprehensive analytics, and advanced trading tools for stocks, ETFs, and options.
• Customer Service: With 24/7 phone support, email, live chat, and a network of over 200 branches for in-person advice, Fidelity ensures that customers can easily access the help they need.
• Fractional Shares: Fidelity introduced the "Stocks by the Slice" program, allowing investors to capitalise on fractional-share ownership and micro-investing, making investing more accessible and affordable, especially for those new to investing.
• Cryptocurrency Trading: In 2018, Fidelity launched a separate entity dedicated to institutional crypto-asset custody and cryptocurrency trading, and in 2024, they introduced Bitcoin as an investment option in 401(k) plans, becoming the first major 401(k) provider to offer cryptocurrency for retirement savers.
• Robo-Advisor Service: Fidelity Go is the company's robo-advisor service, offering low-to-no-cost professional management by utilising computer-based money management. This service is particularly appealing to cost-conscious and beginner investors.
• Youth Account: Fidelity introduced a first-of-its-kind youth account, owned by teens aged 13 to 17, to help them learn about saving, spending, and investing. This account provides access to stocks, ETFs, and fractional shares, while restricting riskier investments such as options and margin trading.

Awards and recognition

Fidelity has received numerous awards and recognition for its investment services. In 2023, Investor's Business Daily recognised Fidelity as the "#1 Most Trusted Wealth Management Company". The award was based on a two-phase study with data collected from over 7,500 respondents. Fidelity has also been recognised by NerdWallet in 2022, 2023, and 2024 as the "Best Online Broker for Beginning Investors", "Best Online Broker for IRA Investing", and "Best App for Investing".

In addition, StockBrokers.com ranked Fidelity as the "#1 Overall Broker" in 2022, 2023, and 2024, and Kiplinger's magazine awarded Fidelity the "#1 Best Overall Online Broker" in 2024. Fidelity was also recognised by Investopedia in February 2023 as the "Best Overall Online Broker", "Best Broker for ETFs", and "Best Broker for Low Costs".

Fidelity's commitment to innovation and enhancing the adviser experience has also been acknowledged. In 2023, they received the Leading Innovation Award at the UK Platform Awards for their work with Conquest. Additionally, they were recognised as a Digital Champion for the fourth consecutive year by NextWealth in 2023.

Fidelity's individual employees have also received awards. Eddie Yoon, for example, was named Bloomberg's "Stock Picker of the Year" in 2019, and Joel Tillinghast was recognised as Morningstar's "Outstanding Portfolio Manager" in 2021.

Investment options

Fidelity offers a wide range of investment options to its customers. These include:

• Stocks: Trade shares of publicly traded companies in both domestic and international markets.
• Exchange-traded funds (ETFs): Actively and passively managed funds that can be bought and sold throughout the market day.
• Mutual funds: Choose from a variety of funds from Fidelity and other firms to fit different investing interests.
• Precious metals: Buy gold, silver, platinum, and palladium to help diversify your portfolio.
• Cryptocurrency: Buy and sell Bitcoin and Ethereum, starting with as little as $1.
• Bonds: Trade in American depository receipts (ADRs) and over 100,000 individual bonds, including corporate, municipal, and government bonds.
• Options: Utilise OptionsPlay Strategies within the Fidelity trading platform to evaluate and trade smarter.
• 529 plans: Fidelity-managed 529 plans offer a range of investment options, allowing you to choose an investment type that suits your situation.
• Robo-advisor: Fidelity Go is a robo-advisor service that provides low-to-no-cost professional management, as the day-to-day money management is handled by computers.

Frequently asked questions