Fisher Investments vs Fidelity: Which Investment Firm is Right for You?

If you are looking for a reputable investment firm to help you grow your wealth, you may have come across Fisher Investments and Fidelity Investments. Both are well-known names in the financial industry, but they have different approaches and services to offer their clients. In this article, we will compare Fisher Investments vs Fidelity on various aspects, such as fees, products, services, and performance, to help you decide which one is better suited for your needs and goals.

Fees and Minimums

One of the first things to consider when choosing an investment firm is how much they charge for their services and how much money you need to invest with them. Fisher Investments and Fidelity have different fee structures and minimum requirements, depending on the type of account and service you choose.

Fisher Investments is a fee-only investment advisor that charges a percentage of your assets under management (AUM) as its fee. The fee ranges from 1.25% to 1.5% per year, depending on the size of your account and the type of portfolio you choose. Fisher Investments does not charge any commissions, trading fees, or account maintenance fees. However, it does have a high minimum investment requirement of $500,000 for most of its services.

Fidelity is a discount broker that offers a wide range of investment products and services, from self-directed trading to robo-advisory to full-service wealth management. Fidelity charges zero commissions on most trades and offers zero expense ratio index funds. However, some of its advice and planning services do charge fees, either as a flat rate or as a percentage of AUM. For example, Fidelity Go, its robo-advisory service, charges 0.35% per year as its fee, with no minimum investment requirement. Fidelity Wealth Services, its full-service wealth management service, charges between 0.5% and 1.5% per year as its fee, with a minimum investment requirement of $250,000.

Products and Services

Another important factor to consider when choosing an investment firm is what kind of products and services they offer and whether they match your needs and preferences. Fisher Investments and Fidelity have different product offerings and service levels, depending on the type of investor you are.

Fisher Investments focuses primarily on financial advice services and portfolio management for high-net-worth individuals. It offers customized portfolios based on your goals, risk tolerance, time horizon, and personal preferences. It also provides access to a dedicated investment counselor who will monitor your portfolio and communicate with you regularly. Fisher Investments mainly invests in stocks, bonds, mutual funds, exchange-traded funds (ETFs), and annuities.

Fidelity offers a broader range of investment products and services than Fisher Investments. It caters to a wider range of individual investors, from beginners to sophisticated traders managing their own portfolios. It offers a variety of investment and retirement accounts, such as IRAs, 529 college savings plans, health savings accounts (HSAs), custodial accounts (UGMA/UTMA), Roth IRAs for children, cryptocurrency accounts, CDs, and annuities. It also offers various tools and resources to help you research, plan, trade, and monitor your investments.

Performance

The ultimate goal of investing is to achieve positive returns that meet or exceed your expectations. Therefore, it is important to compare the performance of Fisher Investments vs Fidelity on various metrics, such as returns, risk-adjusted returns, benchmarks, fees, and client satisfaction.

Fisher Investments does not publish its performance data on its website or in its marketing materials. However, some third-party sources have reported its performance based on its model portfolios or client accounts. For example, according to this article, Fisher Investments’ Global Total Return Portfolio had an annualized return of 9.7% from 1995 to 2019, compared to 7.6% for the MSCI World Index. However, the portfolio also had higher volatility and drawdowns than the benchmark.

Fidelity publishes its performance data on its website for its various products and services. For example, according to [this page], Fidelity Go had an annualized return of 10.8% for its moderate growth portfolio from July 2016 to June 2021, compared to 10% for the Morningstar Moderate Target Risk Index. The portfolio also had lower volatility than the benchmark.

Conclusion

Fisher Investments and Fidelity are both reputable investment firms that offer different advantages and disadvantages for different types of investors. Fisher Investments may be a good choice for high-net-worth individuals who want personalized advice and portfolio management from a dedicated investment counselor. Fidelity may be a better option for investors who want more flexibility and control over their investments or who want to save for specific goals or accounts with lower fees and minimums. Ultimately, the best investment firm for you depends on your personal situation, needs, goals, and preferences.