When it comes to choosing an investment firm to manage your portfolio, Fisher Investments and Fidelity are two of the biggest names in the industry. Both companies have been around for decades and manage hundreds of billions in assets.
But which one is right for you? Here we’ll compare the key features, pros and cons of Fisher Investments and Fidelity to help you decide.
A Brief Comparison Table
| Category | Fisher Investments | Fidelity |
| Account Minimum | $100,000 | $0 for most accounts |
| Fees | 1.0% – 1.5% annually based on AUM | Trading commissions, account fees, expense ratios |
| Investment Approach | Active management, top-down strategies | Passive and active funds, ETFs, stocks, bonds |
| Portfolio Customization | Tailored to each client | Build your own |
| Trading | Handled by Fisher | Self-directed |
| Advisor Access | Dedicated advisor provided | Optional consultant available |
| Services | Portfolio management, financial planning, retirement planning | Trading platforms, research, education |
| Best For | Hands-off investors, $1M+ in assets | DIY investors, smaller portfolios |
Overview Of Fisher Investments
Fisher Investments is a fee-only investment adviser founded in 1979 by Ken Fisher. The company manages over $197 billion in assets for private clients, institutions, and 401(k) plans. Fisher Investments offers a range of portfolio management services to fit different investing styles and risk tolerances.
Some key things to know about Fisher Investments:
- Requires a $100,000 minimum to open an account.
- Charges a fee based on a percentage of assets under management.
- Takes a top-down approach to investing focused on macro trends.
- Invests globally across stocks, bonds, and other asset classes.
- Known for making bullish market calls over the long run.
- Caters services to higher net worth individuals and institutions.
Overview Of Fidelity Investments
Fidelity is one of the largest investment firms in the world, managing over $11 trillion in total assets. Fidelity offers a wide range of investment products and services including retail brokerage, retirement accounts, wealth management, and more.
Some key things to know about Fidelity:
- No minimum balance for retail brokerage and IRA accounts.
- Charges trading commissions and account fees.
- Takes a bottom-up approach focused on individual company analysis.
- Offers extensive investment research and tools for DIY investors.
- Wide range of mutual funds and ETFs covering all asset classes.
- Caters services to individual retail investors.
Comparing Investment Products
Fisher Investments and Fidelity take different approaches when it comes to investment products.
Fisher Investments primarily offers actively managed portfolio strategies focused on various risk tolerances and time horizons. Portfolios are allocated across global stocks, bonds, and other assets based on their top-down macro analysis. Investors work with a dedicated adviser.
Fidelity offers a vast menu of passive and active mutual funds, index funds, ETFs, stocks, and bonds that investors can select themselves. This DIY approach allows investors to build a custom portfolio aligned to their goals. Fidelity’s flagship mutual funds are run by star portfolio managers.
Both offer strong investment products, but Fisher’s strategies involve less work for clients. Fidelity offers more flexibility for hands-on investors.
Comparing Fees And Account Minimums
A key difference between Fisher Investments and Fidelity is their fee structure and account minimums.
Fisher Investments charges an annual fee on assets under management, typically ranging from 1.0% to 1.5%. A $500,000 portfolio would pay $5,000 to $7,500 per year. There is a $100,000 minimum to open an account.
Fidelity has no minimum balance for retail brokerage and IRA accounts. Their fees are based on trading commissions and account charges rather than a percentage of assets. Mutual funds have built-in expense ratios averaging 0.45%. Portfolio management services charge 0.30% to 0.85% annually.
For smaller portfolios under $500,000, Fidelity’s fee structure is cheaper. Fisher’s fees become competitive at higher asset levels given their comprehensive service.
Also Read: Differences Between Fisher Investments And Edward Jones.
Comparing Services Offered
The scope of services provided is another key difference.
Fisher Investments offers complete portfolio management catered to each client. All investing decisions are handled by Fisher’s research team. Each client has a dedicated adviser providing ongoing guidance. Tax-minimization strategies are included.
Fidelity provides the tools for clients to implement their own investment strategy. This includes trading platforms, research reports, retirement planning, education resources, and consultant support if desired. Active trading and wealth management services are available for an added fee.
Fisher Investments takes the driver’s seat on managing money, while Fidelity offers both self-service resources and optional advisory services.
Pros And Cons Of Fisher Investments
Pros
- Actively managed portfolios tailored to each client
- Access to institutional-quality money management
- Strong performance track record over the long run
- Ongoing guidance from a personal adviser
- Handles all trading and rebalancing
Cons
- High account minimums
- Relatively high ongoing fees
- Little flexibility or input for clients
- Large asset base leads to fairly generic strategies
- Recent underperformance compared to market
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Pros And Cons Of Fidelity
Pros
- Low fees and account minimums
- Huge range of investment products and research
- Robust trading platforms and retirement services
- Educational resources for DIY investors
- Flexibility to implement custom strategies
Cons
- Onus on client for investment decisions
- Mixed performance for active mutual funds
- Account charges can add up without large assets
- Conflicts around proprietary products
- Less personal guidance than dedicated money manager
Which Is Better For You?
Deciding between Fisher Investments Vs. Fidelity depends heavily on your individual needs and preferences as an investor.
Fisher Investments is a good option if you want hands-off investment management along with holistic financial advice. The high account minimum and ongoing fees make it suited to those with $1 million or more in investable assets.
Fidelity shines for hands-on investors that want control over their specific holdings. The discount trading and low fees accommodate those just starting out or with fewer assets available to invest. Fidelity also appeals to buy-and-hold index investors given the breadth of passive funds.
Think about whether you prefer an adviser-managed approach or a self-directed investing experience along with your portfolio size and cost considerations when choosing between the two.
Also Read: Choose Between Principal And Fidelity.
Frequently Asked Questions (FAQ)
There is no definitive “better” option. Fisher Investments is better if you want fully discretionary portfolio management and financial planning. Fidelity is likely better if you prefer picking your own investments or have a smaller account balance.
Fisher Investments provides quality portfolio management services for those with over $100,000 to invest. However, the high ongoing fees make it more cost-effective at higher asset levels above $2 million. Performance has been middling in recent years.
Fisher Investments has historically targeted returns of 6% to 9% annually for balanced strategies, depending on the portfolio’s allocation to stocks Vs. bonds. Returns vary based on market conditions and volatility each year.
Fisher Investments requires a minimum of $100,000 in investable assets to open an account. To make the fees cost-effective, you ideally want at least $500,000 to $1 million invested. Certain high net worth, institutional or pension consulting services have higher minimums.
Also Read: Differences Between Edelman Financial Engines And Fidelity.
The Bottom Line
When it comes down to it, Fisher Investments and Fidelity take very different approaches to investing. Fisher offers more personalized advice and full-service money management catered to your needs but requires a heftier investment. Fidelity provides exceptional investment flexibility and research resources at a low cost for hands-on investors.
Think critically about which investment philosophy aligns more closely with your preferences. The amount you have to invest and your desire for guidance will also dictate which company is a better home for your portfolio.
Whether you pick Fisher, Fidelity or another firm, the most important thing is finding an investment solution that helps you effectively pursue your financial goals.