Fidelity Launches First Model Portfolios With ETFs

The newly launched model portfolios consist primarily of Fidelity funds but both include one outside investment, the iShares U.S. Preferred Stock ETF. Both portfolios also include high-yield corporate and emerging market bond funds and a long-term Treasury fund. The multi-asset portfolio alone includes two high dividend stock ETFs and a floating-rate high-income fund.  They will generally rebalance twice a year unless circumstances warrant additional reallocations.

Advisors can access these and other Fidelity Model Portfolios though a TAMP like Envestnet or directly from Fidelity; they don't have to be custodial or clearing clients of the firm.

Goulet expects the trend toward model portfolios will continue as more advisors seek to add value for clients outside of asset management.

Fidelity Model Portfolios are available to advisors at broker-dealers, RIAs, banks and insurance companies, and nearly 100 advisory firms have access to these portfolios through turnkey asset management platforms. As of Dec. 31, Fidelity, the world's fourth largest asset manager,  had $2.4 trillion assets under management, and almost three times that amount under administration.

— Check out Women in WealthTech: Lisa Burns of Fidelity Institutional on ThinkAdvisor.