Increased Competition From RIA Custodians: Fidelity And BlackRock Announce ETF Strategic Alliance

Fidelity Investments and BlackRock Inc. today announced a long-term strategic alliance that provides extensive collaboration across Fidelity’s distribution and asset management organizations with BlackRock and its leading ETF provider, iShares.

 

Fidelity says the deal will more than double its current successful online commission-free ETF offerings and will create new ETF portfolio strategies using iShares as components within its direct-to-investor managed account offering (Portfolio Advisory Services). The partnership will enable Fidelity to off more investments using passively managed ETFs for self-directed investors.

 

Fidelity is increasing the number of iShares ETFs that can be traded commission-free on Fidelity.com from 30 to 65, according to a press release from Fidelity. The new list includes all 10 iShares Core ETFs as well as a diverse selection of international, domestic, and specialized equity; fixed income; and commodities. The 65 commission-free ETFs  complement more than 1,100 other ETFs available at Fidelity.com for a commission of only $7.95 per trade, says the press release.

 

In addition, customers and non-customers can access ETF research and analysis tools at Fidelity’s ETF Research Center. The research sites provides do-it-yourself investors to use an ETF screener with more than 100 screening criteria, a color-coded ETF Market Tracker to easily discover what ETFs are moving in the market, and download independent experts’ timely commentary, investing ideas and pre-defined strategies. In the past year, customer activity on Fidelity’s ETF Research Center increased 28%, says Fidelity.

 

The alliance between the two financial serviecs giants also enhances Fidelity's Portfolio Advisory Services solution, a managed account offering for retail DIY customers. Currently, PAS offers professional money management and access to proprietary research through model portfolios of mutual funds and personalized portfolios using mutual funds, ETFs, and separate accounts. Fidelity says assets have increased in Fidelity managed accounts products by 73% in the past three years. "Fidelity and BlackRock will jointly focus on providing innovative ETF-based solutions on an ongoing basis as part of this partnership," according to the press release.

 

Registered Investment Advisors (RIAs) on the Fidelity Institutional Wealth Services platform will also benefit from the expanded line-up of 65 commission-free ETFs, Fidleity says, but the announcement was light on details about exaclty how RIAs will benefit. “RIAs are increasingly using ETFs in their investing strategies,” said Michael R. Durbin, president of Fidelity’s RIA custody unit. “We look forward to building a strong partnership with BlackRock to give RIAs on our platform new research tools and access to commission-free trading to help them more easily integrate ETFs in their clients’ portfolios.”

 

Unlike the information in the press release about how retail clients will benefit, there were no details about how RIAs will benefit. However, with customer activity on Fidelity's ETF site up 28% and managed accounts sold direct to retail investors up 73% in three years, you can't blam Fidelity (or any of the other custodians that serve retail as well as RIAs) for improving retail invetsment solutions for DIY investors. 

 

 

 

This Website Is For Financial Professionals Only


A Strategically Focused CE Curriculum

With classes approved for over a decade by the CFP Board, IWI, and NASBA, Advisors4Advisors CE classes are an optimal knowledge stream for CFP®, CIMA®, CPA, CPA/PFS®, CFA®, and other practitioners. It's not a grab bag of speakers willing to sponsor CE content. Nor is it a one-man CE course. It's a group of subject matter experts with amazing communication skills and a history of thought leadership that, together, give advisors a well-rounded knowledge system for running a professional practice ethically and intelligently.

CE Since October 2008

A4A CE classes for financial professionals began in October 2008, the week Lehman Bros. collapsed. Initially billed as “The Financial Crisis Webinar Series,” A4A connects advisors with authoritative sources on investing, tax, and financial planning, chosen by A4A Editor Andrew Gluck, a veteran financial reporter. A4A members get a stream of CE classes for an advisor who: 

  • holds a CFP®, CIMA®, CPA, CPA/PFS, CFA or other designation requiring CE annually 
  • values monthly CE classes by Fritz Meyer, Craig Israelsen, Bob Keebler, Frank Murtha, or Andrew Gluck
  • diversifies a core of client portfolios in low-expense funds
  • invests based on MPT and economic fundamentals
  • advises on tax and financial planning as well as investing
  • needs financial counseling skills
  • wants the Certified Financial Counselor™ designation 
  • is building a brand as a thought leader locally or in a niche
  • wants the facts when bad news breaks
  • wants CE aligned with a content marketing system
  • wants 24/7 access to CE on-demand
  • insists on objective evidenced-based tax and investment planning analysis
MEMBER REVIEWS 
William Desormeau, Jr.  
It is not possible for me to overstate the cumulative value that Craig, Bob and Fritz have added for over 10 years to my investment advisory practice, as well as for personal and family financial planning. A4A gets my highest recommendation
Lynn Najman, CFP®
I’ve subscribed to A4A since its inception, and always find it intellectually stimulating and on point. It’s one of the few CE solutions out there that doesn’t waste my time by pushing product or talking down to me.

PeteDeacon-CPA-CFP

Pete Deacon, CPA, CFP®
A4A has had a profound effect on my business. Since 2009, I’ve relied on the consistent messaging and updates to run my business successfully. Being able to present the information from Bob, Fritz, and Craig's ongoing CE webinars has been a significant benefit.

fredericMayersen-phd-cfp

Fredric Mayerson, MBA, PhD, CFP®
I've been a financial professional and professor of finance for 35 years and find Fritz Meyer and Robert Keebler to be among the most engaging, incredibly knowledgeable, and experienced presenters I’ve encountered. They deliver an extraordinary amount of information in an extremely interesting way — sequentially and developmentally, utilizing pedagogical tools and techniques that few possess.  A4A to is the most consistently excellent CE program available.  
Ron Roge, MS, CFP®
I’ve been attending A4A many years because the CE classes are outstanding, and my time is valuable. Though I have over 35 years of experience, I’m always learning something new on A4A. I attend fewer conferences now because the CE is generally not advanced. If you want to learn from the best, in a faster, easier, and less expensive way, I highly recommend A4A.

John R. Day, CPA/PFS®

I’ve been a member since 2011 and never miss the monthly webinars with Fritz Meyer. I appreciate Fritz’s independent views on the economy and markets and Bob Keebler keeps me updated on excellent tax planning ideas. A4A is a great value!

NormanPolitzinerCFP

Norman Politziner, CFP

I wouldn't miss a Fritz Meyer webinar unless my pants were on fire. I've relied on Andrew Gluck's knowledge systems --client communications and CE -- for two decades. It's simply the best solution for tax, financial, investment, and risk-management professionals.®   

Dan Hawley, CFP® 

A4A, for over a decade, has been a great resource for useful and accurate information and CE. A4A and Advisor Products are bargains for an advisory practice. 

KevinBrosious-CFP-CPA-PFS

Kevin Brosious, MBA, CFP®, CPA/PFS®

I get CPA CE credit and CFP credit for the webinars.  But not only that, the A4A content is terrific