Fidelity launches DIY custom indexing
With Solo FidFolios, do-it-yourself investors can create their own custom index, either by starting from scratch or choosing one of 13 thematic stock models and adding or subtracting stocks and updating weights.
Fidelity Investments has launched a digital platform that allows do-it-yourself investors to create their own custom index, either by designing an index from scratch or selecting from 13 thematic stock models built by Fidelity analysts and then adding or removing stocks or updating weights.
Branded as Fidelity Solo FidFolios and leveraging the use of fractional shares, the solution will be rolled out over the coming weeks.
[More: Direct indexing offers advisers opportunities to engage with clients]
It follows the April launch of Fidelity Managed FidFolios, a digital, professionally managed direct-indexing option that offers advanced tax management techniques and is available to retail investors.
Users of the new service can start with as little as $1 per stock and select up to 50 stocks in each portfolio. After a 90-day free trial, the flat monthly fee will be $4.99. The professionally managed portfolio option has a $5,000 minimum investment and charges a management fee of 40 basis points.
[More: Direct indexing gains appeal as taxable losses mount]
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