Table of Contents
Introduction
Investing is a critical decision that should be made with caution and a lot of thought. Two of the most popular options in the automated investment service category include E*TRADE Core Portfolios and Fidelity Go. These platforms are quite convenient and affordable but choosing between the two might be quite a challenge. In this article, I will compare E*TRADE Core Portfolios and Fidelity Go, focusing on the features, fees, investment strategies, and customer support. By the time you are through reading this article, you will be in a better position to determine which of the two platforms is most suitable for you.
E*TRADE's Core Portfolios
E*TRADE Core Portfolios is a product that is aimed at assisting the small investor, the retail investor, and the institutional investor build their portfolio. It has a number of advantages that make it a good choice.
Features
- Diverse Portfolio: E*TRADE's Core Portfolios provides you with a diversified portfolio of ETFs that are suitable for your risk appetite and investment goals. The platform uses smart asset allocation and periodic rebalancing to make sure that your portfolio is always in the right shape.
- Low Entry Point: You can begin investing with as low as $500, making it easily available for new investors.
- Automatic Maintenance: The platform also auto-rebalances your portfolio, so you don’t have to worry about it as it will always be set to your risk preferences.
- Tax Advantages: E*TRADE employs tax-efficient investment strategies like tax-loss harvesting to help reduce the total taxes paid and increase the returns on investment after taxes.
Fees
E*TRADE has set a annual advisory fee of 0.30% on the balance in your account, which is in between that of a traditional financial advisor and other similar advisors, and therefore suitable for investors.
Investment Strategies
This platform has a number of strategies to suit different levels of risk taking, including conservative, moderate and aggressive strategies. In order to achieve these strategies, E*TRADE uses a number of ETFs to come up with a diversified investment product.
Customer Support
E*TRADE offers support through phone, email, and live chat, as well as educational material to help individuals in the investment process.
Fidelity Go
Fidelity Go is another good investment automation service that is suitable for anyone who wants to invest.
Features
- Personalized Portfolios: Fidelity Go creates tailored portfolios for you based on your comfort with risk and investment time horizon using a choice of Fidelity index funds.
- Low Minimum Barrier: You can start with as low as $10, making it easy for even the most tentative investor to get started.
- Automatic Adjustments: Fidelity Go makes regular adjustments to your portfolio to keep it in line with your targets, thereby avoiding unnecessary risks.
- Tax Compatibility: Like E*TRADE, Fidelity Go uses strategies that are sensitive to taxes which can help in reducing the taxes that are paid and increase the returns on investment after taxation.
Fees
Fidelity Go has a slightly higher annual advisory fee of 0.35% of your account balance. Although this is slightly higher than the fees charged by E*TRADE, it is still quite favorable when compared to the services offered by traditional financial institutions.
Investment Strategies
Like Fidelity Go, this platform also offers different investment strategies – conservative, moderate and aggressive – with the help of fidelity index funds to develop the portfolios.
Customer Support
Fidelity Go also offers phone, email, and live chat support, along with educational material to assist clients in their decision-making process.
