A diversified portfolio of stocks investing in large U.S. companies, while seeking to reduce exposure to those with less favorable environmental ratings relative to their sector and enhancing after-tax returns through tax-smart investing.¹
The goal is to provide investment results similar to the index shown here. In this case, this benchmark holds stocks in 500 of the largest companies in the U.S. While your account won’t hold all those stocks, this gives you an idea of how we diversify your account as part of our effort to manage risk for you.
The goal is to provide investment results similar to the index shown here. In this case, this benchmark holds stocks in 500 of the largest companies in the U.S. While your account won’t hold all those stocks, this gives you an idea of how we diversify your account as part of our effort to manage risk for you.
Our team has developed a series of proprietary screens designed to evaluate each stock in an effort to reduce exposure to companies whose environmental ratings are less favorable relative to their sector. Once you invest, you'll also have access to regular in-depth environmental reports to see how the environmental footprint of your portfolio compares to that of the benchmark.
Any savings from tax-smart strategies allows your money to stay invested and working for you. This can help give your money a better chance to grow over the long term.
To help ensure the way you’re invested reflects your priorities, you can exclude up to 5 stocks or 2 industries from your account. We'll still work to keep your account diversified in an effort to reduce the impact that any one stock can have on your account.
At the end of each quarter, an advisory fee will be automatically deducted from your account, based on the fee rate and the amount in your account. You’ll never get a bill from us. Also, tax savings from strategies like these can often be greater than the advisory fees.3
How we build portfolios
Start with the index
We look at all the companies in the index, removing those that don’t fit our filtering criteria, such as companies that engage in certain industries or product lines or that own oil & gas or coal reserves.
Filter companies
We evaluate companies based on a number of environmental factors, filtering out those we believe have the worst environmental practices within each sector. If you choose to exclude up to 5 companies or 2 industries, we’ll account for that too.
Portfolio construction
We build a portfolio, containing about 150 companies, that seeks to reduce exposure to stocks whose environmental ratings are less favorable relative to their sector, while working to provide investment results similar to the benchmark.
How we measure environmental footprint5
This compares the environmental footprint of the holdings in this strategy to that of the strategy’s benchmark, the Fidelity U.S. Large Cap Index℠. These metrics are based on data reported by individual companies and represent the difference for a $10,000 Fidelity Managed FidFolios® sample portfolio.
As of Jan-31-2025
Carbon emissions
This metric is used to help measure a company’s greenhouse gas emissions, through either its core business or related operations.
Why do carbon emissions matter?
Carbon emissions are considered one of the leading causes of global warming. According to the National Oceanic and Atmospheric Administration, the years between 2013 and 2021 were among the warmest on record.
How do you measure carbon ownership?
Carbon "ownership" is measured by the amount of a given investment held as a percentage of a company’s total outstanding market value. For example, a portfolio or benchmark holding that represents 0.001% of that company’s market cap may be said to “own” 0.001% of that company’s carbon emissions.
Water usage
This metric is used to help measure a company's water consumption, including any water used in manufacturing processes or as a byproduct of operations.
Why does water usage matter?
Lack of access to clean water is a critical geopolitical issue, particularly in the developing world. According to the UN, 2.3 billion people worldwide are currently facing water shortages.
How do you measure water consumption?
We measure "ownership" by the amount of a given investment held as a percentage of a company’s total outstanding market value. For example, a portfolio holding that represents 0.001% of that company’s market cap may be said to “own” 0.001% of that company’s water consumption.
This analysis is limited to 71% of the companies in the benchmark index due to data availability and validation.
Understanding the metrics
The sample portfolio shown above owns less kg of carbon emissions than the benchmark because it holds fewer companies, and those that it does own generally have more favorable environmental practices than the companies in the benchmark as a whole.
For perspective, according to the U.S. Environmental Protection Agency, a gallon of gas burned by a typical car generates nearly 9 kg of CO₂.
The sample portfolio shown above consumes less water than the benchmark because it holds fewer companies, and those that it does own generally have more favorable environmental practices than the companies in the benchmark as a whole.
For perspective, according to a 2015 Los Angeles Times study, a pound of beef requires roughly 6.4 cubic meters of water to produce, which is equivalent to about 1,700 gallons.
Information about a company’s carbon emissions or water consumption through its core or related business operations is provided by individual companies in the benchmark index, as well as the sample portfolio, on a quarterly basis.
What your portfolio could look like
Invest in some of the largest U.S. companies
We build portfolios using about 150 stocks issued by some of the largest, best known companies in the U.S. This kind of diversification is one way we work to manage risk for you. We’re showing the 10 largest holdings in a sample portfolio6 here to give you a sense of which stocks may have a more significant impact on your returns.
The information below shows how this Sample Portfolio compares to its benchmark, before any personalization selections have been made. Your actual portfolio will likely differ from the sample shown here.
As of Feb-28-2025
Name
% of portfolio
Industry
AAPL
APPLE INC
7.21%
Technology Hardware, Storage & Peripherals
NVDA
NVIDIA CORP
6.14%
Semiconductors & Semiconductor Equipment
MSFT
MICROSOFT CORP
5.47%
Software
AMZN
AMAZON.COM INC
3.86%
Broadline Retail
META
META PLATFORMS INC CL A
2.99%
Interactive Media & Services
GOOGL
ALPHABET INC CL A
2.11%
Interactive Media & Services
AVGO
BROADCOM INC
1.98%
Semiconductors & Semiconductor Equipment
JPM
JPMORGAN CHASE & CO
1.78%
Banks
GOOG
ALPHABET INC CL C
1.78%
Interactive Media & Services
V
VISA INC CL A
1.58%
Financial Services
Total of top 10 positions
34.90%
More about holdings
Yes, once you open your account you’ll have a dashboard that you can visit where you’ll be able to see every stock you own, as well as a record of all the transactions we’ve made on your behalf.
In deciding how many stocks to hold in a portfolio, we choose a number that allows us to pursue investment results similar to the benchmark index while diversifying your account. This can help manage risk by giving us the ability to spread your “eggs” out so they’re not all in a single basket. The number of stocks in your actual portfolio will likely change over time.
If you exclude any stock from your portfolio, the investment team will "replace" it with another stock in the benchmark index that has similar characteristics, which is one way we work to provide investment results similar to the index.
Invest in a wide variety of sectors
Another way we work to manage risk is by providing exposure to different sectors across the U.S. economy. This sample portfolio illustrates this diversification. While you might see some sectors you wouldn't expect in a portfolio like this, it could be due to our efforts to provide investment results similar to the benchmark. Also, remember that companies in these different sectors may still be working to reduce their environmental footprint.
The information technology sector is composed of companies that offer goods and services, including hardware, software, semiconductors, and consulting services.
32.04%
31.29%
Financials
The financials sector consists of companies engaged in businesses such as banking and brokerage, mortgage finance, and insurance.
15.12%
14.53%
Health Care
The health care sector includes companies engaged in the production and delivery of medicine and health care–related goods and services.
11.10%
10.74%
Consumer Discretionary
The consumer discretionary sector includes companies that manufacture goods or provide services that people want, but don't necessarily need, such as high-definition televisions, new cars, and family vacations.
10.02%
10.45%
Communication Services
The communication services sector is made up of companies that facilitate communication or provide access to entertainment content and other information through various types of media.
8.10%
9.45%
Industrials
The industrials sector includes companies that manufacture and distribute capital goods in support of industries such as aerospace and defense, construction and engineering, and electrical equipment and heavy machinery.
7.89%
8.27%
Consumer Staples
The consumer staples sector consists of companies that provide goods and services that people use on a daily basis, like food, clothing, or other personal products.
6.81%
5.72%
Real Estate
The real estate sector is primarily made up of companies that own commercial real estate properties. A large portion of the companies are structured as real estate investment trusts (REITs).
2.72%
2.14%
Energy
The energy sector consists of companies involved in the exploration, production, or management of energy resources such as oil and gas, as well as companies that service these industries.
2.41%
3.24%
Materials
The materials sector consists of companies that are engaged in the manufacturing or processing of materials such as chemicals and plastics or paper and packaging, or the extraction of metals and minerals.
2.32%
1.91%
Utilities
The utilities sector includes companies that engage in the production and delivery of electric power, natural gas, water, and other utility services, such as steam and cooled air.
1.00%
2.25%
Unassigned
In some cases, we’re either not able to align a company to one of the generally used categories or we cannot determine the sector in which its primary business lies.
0.48%
0.00%
Understanding sectors
A sector is a segment of the economy made up of a group of
businesses that share a related product or service—like health care or real estate. Dividing the economy
into sectors enables investors to analyze the economy as a whole and predict how companies within those
sectors may perform. We use sectors in an effort to diversify the stocks you own across different parts of
the economy, which is one way we manage risk for you.
Understanding the way your investment could be spread across
different segments of the economy can help you better understand how your investment team is working to
diversify your account. Also, different sectors have historically performed better during different phases
of the economic cycle. We have some articles explaining this in our Learning Center.
While sectors are larger segments of the economy, industries are
smaller, more specific groupings that live within sectors. For instance, the Health Care sector contains 6
industries:
Biotechnology
Health Care Equip & Supplies
Health Care Providers & Services
Health Care Technology
Life Sciences Tools & Services
Pharmaceuticals
What happens after you build my portfolio?
Visit your dashboard to see your estimated tax savings, what you own, and other important information
We’ll let you know when we make trades on your behalf
You’ll receive regular updates on your account and the markets from your investment team
1. Pick a strategy, then personalize it by identifying stocks or companies you don’t want to own.
You can exclude up to 5 stocks or 2 industries from your account.
2. See if this product is right for you
Answer a few questions to see whether the kind of risk that comes with an account like this is in line with who you are as an investor. (Don’t worry, it’ll only take a minute!)
3. Add money to your account and let our pros go to work for you
We’ll make all the trades, looking for opportunities to help you reduce what you pay in taxes. In many cases we expect your tax savings will be greater than your advisory fees.3
A closer look at this strategy
Total returns
You can see how both this strategy and the benchmark index have performed over different time periods. Comparing the after-tax performance of the strategy to the after-tax benchmark can show the potential benefits of tax-loss harvesting.
Average annual total returns as of Feb-28-2025
Annualized
3 month
YTD
1 year
3 year
5 year
10 year
Life
Pre-tax composite
Environmental Focus Strategy7 (net of fees)
-1.19%
0.87%
20.76%
13.71%
--
--
11.53%
Fidelity U.S. Large Cap IndexSM (pre-tax benchmark)
-4.52%
-4.52%
8.43%
9.08%
--
--
8.59%
After-tax composite (taxable accounts)
Environmental Focus Strategy7 (net of fees)
-1.04%
0.83%
21.62%
16.38%
--
--
12.66%
After-tax composite benchmark
-1.25%
1.39%
18.49%
12.38%
--
--
8.63%
Pre-tax composite life of return since inception date of Jun-30-2021. After-tax composite life of return since inception date of Dec-31-2021.
Important information about performance returns.Performance cited represents past performance. Past performance, before and after taxes, does not guarantee future results and current performance may be lower or higher than the data quoted. Investment returns and principal will fluctuate with market and economic conditions, and you may have a gain or loss when you sell your assets. Your return may differ significantly from those reported. The underlying investments held in a client’s account may differ from those of the accounts included in the composite. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Before investing in any investment product, you should consider its investment objectives, risks, and expenses. This material has been prepared for informational purposes only and is not to be considered investment advice or a solicitation for investment. Information contained in this report is as of the period indicated and is subject to change. Please read the applicable advisory program’s Form ADV Program Fundamentals, available from a Fidelity advisor or at Fidelity.com/information.
Understanding returns
Environmental Focus Strategy (pre-tax)—These are returns for the strategy, before any tax-smart strategies were applied.
Environmental Focus Strategy (after-tax)—These are the returns for the strategy after tax-smart techniques were applied. Note that these techniques can only be used for taxable accounts. So if you have an IRA or other retirement account you won't benefit from these.
Fidelity U.S. Large Cap Index℠—These show the returns for this strategy’s benchmark index.
After-Tax Composite Benchmark—These show the returns for this strategy’s benchmark, after taxes are factored in.
All returns are net of fees, where applicable.
To compare the strategy's performance to the performance of the benchmark index, look at the Environmental Focus Strategy (pre-tax) and the Fidelity U.S. Large Cap Index℠. As you can see, the 2 sets of numbers have historically been very close to one another. It’s important to remember that benchmark indexes are not subject to fees.
To see the "extra" returns that tax-smart strategies have historically provided, compare the Environmental Focus Strategy (pre-tax) to the Environmental Focus Strategy (after-tax).
Portfolio analytics
Are you the type of investor who likes to dig into the details? This table provides information on some very specific sample portfolio metrics. You can use these numbers to better understand how your strategy may compare to the benchmark index.
Select each characteristic to learn what the term means.
This shows the number of holdings in either the sample portfolio or in the benchmark index.
150*
509
Dividend yield
Dividend yield measures how much income the stock, or in this case a portfolio of stocks, will produce. It is shown as a stock's annual dividend expressed as a percentage of its price. For example, a company paying an annual dividend of $3.48 and trading at $147 per share would have a dividend yield of 2.37%. That means you could expect $2.37 in annual dividends for every $100 invested.
1.29%
1.26%
3-year earnings share growth
Earnings per share (EPS) is the portion of a company’s profit for each share held by common stockholders. It can help tell you how profitable a company is. In this case, we show the rate of growth for EPS over the last 3 years. This can be used to help determine if a company is becoming more or less profitable over time.
13.19%
13.75%
Long-term debt-to-capitalization ratio
This ratio is designed to measure the how much debt a company has. It’s calculated by dividing long-term debt by the value of all its outstanding shares. This can be used to evaluate risk—a higher ratio can mean a company is using more debt to finance operations.
38.72%
38.61%
Predictive beta
Predictive Beta measures how sensitive a portfolio is to changes in the market. In this case the “market” is the benchmark index, so that has a predictive beta of 1.0. A predictive beta of less than 1.0 means the portfolio would have fluctuated less (or more) than the benchmark index. The opposite goes for a predicative beta of greater than 1.0. Predictive Beta is calculated utilizing available month-end portfolio and benchmark stock-level characteristics such as earnings/price ratio, market capitalization, and industry membership, amongst others, along with the historical variances and correlations of the returns associated with those characteristics. The calculation utilizes a data history of five years. The beta calculation is not based exclusively on historical returns.
1.01
1.00
Price / earnings ratio
The price-to-earnings (P/E) ratio measures the current share price of a stock relative to the company’s earnings per share (EPS). This can be used to help determine how stocks are priced relative to the amount of money they earn.
26.58
26.17
Price / book ratio
This ratio compares a company's market value, which is calculated by multiplying its share price by the number of outstanding shares, to its book value, which is the total value of all the assets a company owns. This can be used to help how stocks are priced relative to the value of the assets they own.
5.48
5.18
Price / sales ratio
The price-to-sales ratio is calculated by dividing a company's market capitalization (the number of outstanding shares multiplied by the share price) by total revenue over the past 12 months. In general, a lower ratio is considered more attractive.
3.55
3.61
Weighted average market cap ($ Billions)
Weighted average market cap is a way to measure the total value of a portfolio or index. In this calculation, each stock is weighted according to the value of all its outstanding shares. This can be used to help determine the influence a single stock might have on the performance of an index or strategy.
999.94
999.50
Weighted median market cap ($ Billions)
Weighted median market cap is calculated and used in much the same way as weighted average market cap. The only difference is that instead of calculating it based on the total value of all the stocks and dividing it by the number of stocks in the index or strategy, the median is the midpoint of the range of market caps of stocks in the index or strategy.
254.97
257.59
Understanding portfolio analytics
Many of these metrics can be used to measure the collective financial health of the companies in both the sample portfolio and the benchmark index. Others can be used to get a sense of how the sample portfolio and the index may be slightly different.
These metrics can help you better understand the kinds of things the investment team is looking at when building your portfolio and how close those characteristics approximate the characteristics of the benchmark index.
Because the sample portfolio won’t own every single stock in the benchmark index, there may be slight variations with certain metrics. You can look at these side by side to see how close we’re coming to matching the characteristics of the benchmark index.
FAQs: Fidelity Managed FidFolios®
Top Five Questions
Fidelity Managed FidFolios® are a type of digital separately managed account designed for clients who are looking to own a professionally managed portfolio of stocks. When you enroll in Fidelity Managed FidFolios, you’re hiring a team of experienced professionals to take care of the day-to-day investment decisions, based on the strategy you select that's personalized around your investment preferences. Here's some of what this team of professionals will do for you:
Build your portfolio, based on an approach you've selected and certain investment preferences you've provided. Note that you may exclude up to five individual stocks or two industries in your account.
Buy and sell investments in your account to maintain the investment approach you've chosen.
Use fractional shares to build a portfolio which seeks to meet a specific investment objective, which will vary by strategy.
Invest any money you add to your account over time according to the investment approach you've chosen.
Apply tax-smart investing techniques where it makes sense.††
Keep you informed as to how your account is performing.
All of your experience with Fidelity Managed FidFolios® takes place online—including providing information about yourself, communicating your investment preferences, opening your account, and tracking the holdings in your account.
Fidelity Managed FidFolios® strategies do not come with an advisor. All account activities, including opening your account and making updates to your preferences, take place online.
The fee‡‡ for Fidelity Managed FidFolios® is based on the value of the assets in your account and an annual advisory fee rate of the strategy you choose, for which you will be billed quarterly in arrears. Note that when we make trades in your account you will not be charged any commissions.
The fee‡‡ for Fidelity Managed FidFolios® is calculated quarterly in arrears and automatically deducted from your account each quarter.
Fidelity Managed FidFolios® will send regular electronic communications to keep you informed as to what we're doing on your behalf. These include notifications whenever we buy or sell stocks in your portfolio. We'll also provide monthly statements that summarize all account activity for the prior month and a summary of your account balance.
About Fidelity Managed FidFolios®
Fidelity Managed FidFolios® are a type of digital separately managed account designed for clients who are looking to own a professionally managed portfolio of stocks. When you enroll in Fidelity Managed FidFolios, you’re hiring a team of experienced professionals to take care of the day-to-day investment decisions, based on the strategy you select that's personalized around your investment preferences. Here's some of what this team of professionals will do for you:
Build your portfolio, based on an approach you've selected and certain investment preferences you've provided. Note that you may exclude up to five individual stocks or two industries in your account.
Buy and sell investments in your account to maintain the investment approach you've chosen.
Use fractional shares to build a portfolio which seeks to meet a specific investment objective, which will vary by strategy.
Invest any money you add to your account over time according to the investment approach you've chosen.
Apply tax-smart investing techniques where it makes sense.††
Keep you informed as to how your account is performing.
All of your experience with Fidelity Managed FidFolios® takes place online—including providing information about yourself, communicating your investment preferences, opening your account, and tracking the holdings in your account.
Fidelity Managed FidFolios® strategies do not come with an advisor. All account activities, including opening your account and making updates to your preferences, take place online.
Fidelity Managed FidFolios® offers 2 different types investment strategies:
Direct indexing strategies
The investment team seeks to provide investment results similar to a benchmark index, such as the Fidelity U.S. Large Cap Index℠. They do this by building and managing a portfolio of a portion of the stocks contained in that index.
Actively managed strategies
The investment team builds a portfolio in pursuit of a specific investment objective, such as outperforming a benchmark index or generating income. They do this by building and managing a portfolio of stocks that they believe will help them achieve that objective.
The Fidelity U.S. Large Cap Index℠ is a float-adjusted market capitalization–weighted index designed to reflect the performance of the stocks of the largest 500 U.S. companies based on float-adjusted market capitalization. Indexes are unmanaged. It is not possible to invest directly in an index. Securities indices are not subject to fees and expenses typically associated with managed accounts or investment funds.
Portfolios can fluctuate in value. The investments that the investment team uses to build Fidelity Managed FidFolios® portfolios are subject to the ups and downs of the market. When markets decline, or the investments in your account decline in value, you may lose money.
In addition to a website where you can check on your account, Fidelity Managed FidFolios® will also send monthly emails to the email address we have on file for you. These emails will contain a summary of account information, including your balance, plus a summary of any activity that's taken place in your account.
Fractional shares are portions of full shares.
We use fractional shares when building Fidelity Managed FidFolios® because they give us the ability to invest your money across a larger number of stocks.
Indexes are collections of stocks that are used as a tool to represent certain markets or market sectors. You may also hear these referred to as "benchmarks." While you can not invest directly in an index such as the S&P 500, direct indexing is the practice of trying to track the performance of one of these indexes by holding all or a portion of the companies represented in the index. Most people do this by holding an index fund or exchange-traded fund. With direct indexing, which we use when building and managing the U.S. Large Cap Index, the International Index, the U.S. Total Market Index, the U.S. Low Volatility Index, and the Environmental Focus strategies, you directly own a subset of the stocks in the index, or benchmark, in an effort to approximate its risk and return characteristics.
Fidelity Managed FidFolios® accounts use a series of tax-smart techniques that are designed to help reduce the impact of taxes on your account. Here's a sample of the techniques we use throughout the year:
Transition management
When it makes sense, we may search for ways to integrate your existing eligible holdings into your Fidelity Managed FidFolios® account as opposed to selling all of your existing investments in order to "start from scratch." This can help reduce the potential tax consequences of building your portfolio.
Tax-loss harvesting
When one of your holdings has decreased in value it can be sold at a loss. Known as tax-loss harvesting, this loss can then be used to offset gains in either your Fidelity Managed FidFolios® account or elsewhere in your overall investment portfolio.
Manage capital gains
When selling investments in your account, we'll generally first look to sell those that you've held for a longer time period, allowing us to take advantage of lower long-term capital gains tax rates.
Tax-smart withdrawals
If you take money from your account, we'll seek to reduce the tax consequences of that. If withdrawals are planned, we'll seek to keep sufficient cash in your account. If they're unplanned, and we have to sell securities to fund them, we'll work to reduce the tax impact of those sales.
Note that these techniques are used in accounts with taxable registrations only.
When one of your holdings has decreased in value it can be sold at a loss, we then replace it with a stock of similar characteristics. Known as tax-loss harvesting, this loss can then be used to offset gains in either your Fidelity Managed FidFolios® account or elsewhere in your portfolio. We believe that tax-loss harvesting is more than a year-end exercise, so we look for opportunities throughout the year, which has the potential to produce better long-term investment results for our clients. Note that this technique is only applied in accounts with taxable registrations.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
What you'll pay
The fee‡‡ for Fidelity Managed FidFolios® is based on the value of the assets in your account and an annual advisory fee rate of the strategy you choose, for which you will be billed quarterly in arrears. Note that when we make trades in your account you will not be charged any commissions.
The fee‡‡ for Fidelity Managed FidFolios® is calculated quarterly in arrears and automatically deducted from your account each quarter.
There are no fees specifically charged for closing or withdrawing money from your Fidelity Managed FidFolios® account. However, closing your account by withdrawing your entire balance may result in a termination of the managed account service, at which time you will be charged a prorated portion of the advisory fee for the time your account was managed during the current quarterly billing period. Also, note that for tax-advantaged accounts like IRAs, there may be early withdrawal penalties for any withdrawals taken prior to age 59½. Within taxable accounts, any securities you sell may result in capital gains, which would be taxed.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
Opening your account
Fidelity Managed FidFolios®, like all financial products, comes with a certain level of risk. These risks will be more pronounced given that it invests entirely in stocks. Prior to your opening this account we're required to make sure you're properly positioned to assume this kind of risk, as not all financial products are suitable for all investors.
The following types of accounts are available through Fidelity Managed FidFolios®:
Taxable (individual)
Traditional IRA
Roth IRA
Rollover IRA
There are no restrictions on the number of accounts you can have open. However, Fidelity Managed FidFolios® accounts must be funded with the minimum investment amount of $5,000 within 6 months of being opened or the accounts may be subject to closure.
You can fund your account with any amount. However, we won't start buying stocks in your account until your balance reaches $5,000. For balances under $5,000, your money will be invested in a money market mutual fund, Fidelity Government Cash Reserves Fund (FDRXX). Note that prior to our buying stocks on your behalf, you will not be charged any Fidelity Managed FidFolios® advisory fees.
You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund's sponsor, are not required to reimburse money market funds for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress. Interest rate increases can cause the price of a money market security to decrease. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a money market security to decrease. Fidelity's government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares.
You start by providing some information about yourself, such as the year you were born, your household income and financial situation, when you'll need the money you're investing, and your risk tolerance for your account. Once you do that, we'll check to make sure this type of product, which is not diversified across different asset classes, is suitable for you. Once we determine this type of investment is appropriate for you, you open your account online.
Once your account is open, you can add money to it. You can set up an initial deposit, as well as subsequent ongoing deposits. Don't worry if you're not ready to set those up when you open your account. You can do it later.
Fidelity Managed FidFolios® use an online account application, which should only take a few minutes to complete. Assuming everything is in good order, once you successfully complete the application, your new account number will be generated.
If you have an eligible Fidelity brokerage or retirement account, you can convert it to Fidelity Managed FidFolios®. When converting an account, you will retain your existing account number, along with other features like beneficiary designations, automatic deposits, and automatic withdrawals, if applicable.
If you choose to open an account, we’ll display any Fidelity accounts that are eligible to be converted. Only certain accounts can be converted at this time.
Funding your account
If you transfer cash directly from a self-directed Fidelity brokerage account into your Fidelity Managed FidFolios® account, that money should appear in your account immediately, provided the transfer request was received in good order by Fidelity prior to 9:00 p.m. ET. For transfers from an external bank, transfer requests submitted by 4:00 p.m. ET are generally received by Fidelity on the next business day, although times may vary, due to conditions outside of our control. If you send us a check, the money will generally appear in your Fidelity Managed FidFolios® account on the same day we receive that check.
For monthly transfers, money will appear in your account on the next business day after the transfer was scheduled. In other words, if your monthly transfer is scheduled for the 15th of each month, the money will appear in your account on the 16th, assuming that date doesn't fall on a Saturday, Sunday, or bank holiday.
When you're asked to add money to your Fidelity Managed FidFolios® account online, you'll be given the option of doing it in the form of securities you already own instead of cash. The investment team will review these securities, and in cases where they fit into the strategy you've selected, these securities will become part of the portfolio. We'll let you know which securities meet this criteria. Otherwise, the securities will be sold, with the proceeds being used to purchase stocks to build your Fidelity Managed FidFolios® portfolio. In some cases, we're not able to accept certain stocks for funding. In these cases, we can help you sell these, at which time you can add the cash proceeds to your account. Please note that any securities we sell on your behalf that have unrealized gains may result in tax consequences.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
You can deposit as much as you'd like into your Fidelity Managed FidFolios® account. However, online contributions are currently limited to $250,000 per day. If you'd like to start with an amount greater than this, please contact an investment professional by calling 800-343-3548.
For tax-advantaged accounts, such as IRAs, the amount of your contribution is subject to IRS annual contribution limits. Rollover and IRA transfer amounts are not subject to those limits.
Fidelity Managed FidFolios® accounts can be funded with cash or eligible securities. Please see the Form ADV, Part 2A Brochure for more information about which securities are eligible for funding.
Fidelity Managed FidFolios® are built using fractional shares, so there are certain limitations when it comes to transferring assets. If fractional shares are transferred to another Fidelity account, we're able to accommodate those transfers. However, fractional shares may not be transferred outside of Fidelity to an account at another firm and will be liquidated prior to the transfer.
When you initially fund your Fidelity Managed FidFolios® account, you'll also have the option of adding money from another account on a regular basis. This money will be invested according to the strategy you've selected. When you decide you need to access the money in your account, you can set up automatic monthly withdrawals using the same link.
Transfer cash from a Fidelity or non-Fidelity account. Simply use the "Add money" button on your dashboard, or “Transact” if you are using the Fidelity mobile app, then choose how you'd like to fund your account.
Deposit a check into your account. You can deposit it using our mobile application or send it via US Mail. Be sure to write your account number in the memo field and make the check payable to Fidelity Brokerage Services LLC.
To deposit rollover checks, please use this address:
Fidelity Investments
ATTN: Direct Rollovers
PO Box 770001
Cincinnati, OH 45277-0037
All other check deposits can be mailed using one of the following addresses.
US Mail:
Fidelity Investments
PO Box 770001
Cincinnati, OH 45277-0003
If you already have a bank account linked to Fidelity then you can use it to fund your Fidelity Managed FidFolios® account, although you will have to establish a link between that account and your new Fidelity Managed FidFolios® account. To link a bank account to your Fidelity account, log in to Fidelity.com and go to Manage Banks. Select the Link a New Bank Account button. You will need the routing and account number for your bank account to complete the setup.
You're not able to fund your Fidelity Managed FidFolios® account with stocks that have been purchased on margin.
You can roll over cash or securities from a 401(k) account to a Fidelity Managed FidFolios® rollover IRA. Please see the Form ADV, Part 2A Brochure for more information about which securities are eligible for funding.
Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets
After your account is open
In order for the investment team to build your portfolio, your Fidelity Managed FidFolios® account balance must reach $5,000. Once your account reaches a balance of at least $5,000, we'll begin purchasing stocks in order to build your portfolio, usually over the next few business days. When you fund your account from external sources (i.e., a transfer from an external bank or a check) that money may take up to 10 business days before it can be invested. Note that any money you add below that account minimum of $5,000 will be kept in short-term investments, with no advisory fee charged, until such time your account balance reaches $5,000.
Fidelity Managed FidFolios® will send regular electronic communications to keep you informed as to what we're doing on your behalf. These include notifications whenever we buy or sell stocks in your portfolio. We'll also provide monthly statements that summarize all account activity for the prior month and a summary of your account balance.
When you log in to your Fidelity Managed FidFolios® account and view your account dashboard you'll be able to see information about your holdings, any trades we've made in your account, as well as any advisory fees you were charged. Note that you'll also receive statements and trade confirmations via email. If you've selected the Environmental Focus Strategy, you'll also be able to see environmental reporting related to your strategy.
When you want to withdraw money from your Fidelity Managed FidFolios® account, you can visit our transfers page, which provides instructions on initiating withdrawals. At that time the investment team will sell securities in your account to cover those withdrawals. That money can then be sent to the address we have on file for you via check, transferred to another Fidelity account, or transferred to a non-Fidelity account.
The processing time for your withdrawal depends on the method you use to withdraw your money. If you choose to transfer your money electronically to another account, such as a checking or savings account, your withdrawal should process within 1 to 3 business days if you submit your request by 4 p.m. ET. If you choose to wire your money to another account, the transfer should process immediately as long as you submit your request by 4 p.m. ET. If you request to have a check sent to you, the check takes about 5 to 6 business days to process before it's mailed to you.
When you open your Fidelity Managed FidFolios® account, you can specify up to 5 companies or 2 industries you'd like us to leave out of your portfolio. At any time after you open your account, you'll be able to change these preferences. On your account dashboard, under the section About your account, you can click on the link "Exclude companies or industries." From there, you'll be able to add or change your personalization preferences. Note that it may take several business days for these new preferences to be reflected in your portfolio.
When you first open your Fidelity Managed FidFolios® account, it may take a few days for all the information about your holdings to properly display. If you've already had your account opened and you're not seeing your information, this may be due to a technical issue that we're working to resolve.
You can close your Fidelity Managed FidFolios® account or terminate your service online by processing a full withdrawal request. There is no cancellation fee should you decide to terminate your participation in Fidelity Managed FidFolios®. If you do terminate the service, you will be charged a prorated portion of the advisory fee for the time your account was managed and based on your account balance during that period. Should you elect to close your account you'll have 2 options. The first is to request that all holdings in your portfolio will be liquidated, with the cash proceeds sent to you. This could result in tax consequences for you. Also, if you own a tax-advantaged account, like an IRA, there may be early withdrawal penalties if you elect to take any withdrawals prior to age 59½ without reinvesting the money in another account with a tax-advantaged registration. To close your account, visit our transfer page, and select your Fidelity Managed FidFolios® account and the account into which you want to transfer money. Make sure you select an amount that is equal to the transaction limit shown (you'll have to be very accurate, down to the penny), then select "Close account." The second option is to have the securities in your account transferred to another Fidelity account. To do this, please call (800) 544-4442. Your third option is to have your shares transferred to an outside firm. However, should you choose this option be aware that fractional shares may not be transferred outside of Fidelity to an account at another firm and will be liquidated prior to transfer. In cases where you have one or more positions that are comprised of both whole and fractional shares the whole shares will be transferred and the fractional shares will be liquidated, with the proceeds being transferred to that outside account.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
Your annual strategic review
Once a year, Fidelity Managed FidFolios® will ask you to review the information you provided regarding your financial situation to help us make sure this type of investment remains suitable for you. When it's time for your review, you'll be prompted to go back to the original questions you answered when you opened your account, review the answers you provided, and make changes where necessary. If nothing has changed, you can confirm that. However, if something significant changes prior to your annual review, it's important that you let us know.
When it's time for your annual strategic review for your Fidelity Managed FidFolios® account, we'll send you a reminder email 30 days prior to the date we need you to review your information.
How your account is invested
All investment decisions regarding your Fidelity Managed FidFolios® account will be made by Strategic Advisers LLC, which acts as the subadvisor and discretionary Portfolio Manager to Fidelity Personal and Workplace Advisors LLC.
The number of stocks or American depository receipts (ADRs) will vary based on the strategy you choose. Please review each individual strategy summary to learn more about the approximate number of holdings in each strategy.
You may not direct the purchase or sale of individual investments in your Fidelity Managed FidFolios® account. By enrolling in a managed account service like Fidelity Managed FidFolios® you turn the day-to-day management of your investments over to a team of investment professionals. However, you are entitled to place reasonable restrictions on the management of your account, such as limiting up to 2 industries or 5 individual companies from the stocks we'll consider when building your portfolio.
In general, the investment team will purchase U.S. common stocks or American Depositary Receipts (ADRs) for Fidelity Managed FidFolios® accounts, depending on the strategy you select. In the case of the International Strategy, a no-fee mutual fund is used to access markets where ADRs are either not available or inappropriate. There may also be short-term investments which the investment team uses to meet any expected withdrawal needs.
Strategic Advisers LLC will make investment decisions for Fidelity Managed FidFolios® accounts based on a range of factors, including a particular security's risk and return characteristics and a desire to build a portfolio aligned to your selected strategy.
Dividends for Fidelity Managed FidFolios® accounts will be held in a money market fund, known as your core position, until the investment team reinvests them in line with your chosen strategy. The only exception to this are dividends valued at less than $0.01. Because of the challenges involved with handling amounts of that size, different treatment may apply to any amount smaller than that, or nondivisible amounts (based on the .001 share limitation). Please see the Form ADV, Part 2A Brochure for additional information.
An ADR is a security that trades in the U.S. and in U.S. dollars, but represents claims to shares of a foreign stock. The ADR is created by a bank that purchases foreign stock and then issues receipts of that company in the U.S. for trading on an exchange or over the counter (OTC) market. ADR dividends are paid in U.S. dollars, but are subject to foreign tax withholding. ADRs are subject to minimal periodic service fees to compensate the intermediary bank for providing custodial services. These fees typically average from $0.01 to $0.03 per share but may be higher in some cases. These fees are industry standard and subject to be charged no matter what firm or what type of account an ADR is held.
With both direct indexing and actively managed strategies, you always directly own the individual securities in the accounts. Where the two types of strategies differ is in their investment approach. Direct indexing strategies seek to approximate the risk and return characteristics of a specific benchmark index, such as the Fidelity U.S. Large Cap Index℠. In an actively managed strategy, the portfolio manager picks specific securities in an effort to achieve a specific investment objective, such as outperforming a specific benchmark.
The Fidelity U.S. Large Cap Index℠ is a float-adjusted market capitalization–weighted index designed to reflect the performance of the stocks of the largest 500 U.S. companies based on float-adjusted market capitalization. Indexes are unmanaged. It is not possible to invest directly in an index. Securities indices are not subject to fees and expenses typically associated with managed accounts or investment funds.
The investment team starts by looking at all the companies in the Fidelity U.S. Large Cap Index℠ (the strategy's benchmark) and removing those that don’t fit our filtering criteria, such as companies that engage in certain industries or product lines or that own oil & gas or coal reserves. We then evaluate companies based on a number of environmental factors, filtering out those we believe have the worst environmental practices within each sector. You can also eliminate up to 5 companies or 2 industries, and we’ll account for that as well. Finally, we build a portfolio, containing about 150 companies, that seeks to reduce exposure to stocks whose environmental ratings are less favorable relative to their sector, while working to provide investment results similar to the benchmark.
The Fidelity U.S. Large Cap Index℠ is a float-adjusted market capitalization–weighted index designed to reflect the performance of the stocks of the largest 500 U.S. companies based on float-adjusted market capitalization. Indexes are unmanaged. It is not possible to invest directly in an index. Securities indices are not subject to fees and expenses typically associated with managed accounts or investment funds.
Additional important information
††Tax-smart (i.e., tax-sensitive) investing techniques, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, primarily with respect to determining when assets in a client's account should be bought or sold. Assets contributed may be sold for a taxable gain or loss at any time. There are no guarantees as to the effectiveness of the tax-smart investing techniques applied in serving to reduce or minimize a client's overall tax liabilities, or as to the tax results that may be generated by a given transaction.
‡‡The advisory fee does not cover charges resulting from trades effected with or through broker-dealers other than Fidelity affiliates, mark-ups or mark-downs by broker-dealers, transfer taxes, exchange fees, regulatory fees, odd-lot differentials, handling charges, electronic fund and wire transfer fees, or any other charges imposed by law or otherwise applicable to a managed account. Investors will also incur underlying expenses, if any, associated with the investment vehicles selected for the account.
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Tax-smart investing strategies, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, Strategic Advisers LLC (Strategic Advisers), primarily with respect to determining when assets in a client's account should be bought or sold. Assets contributed may be sold for a taxable gain or loss at any time. There are no guarantees as to the effectiveness of the tax-smart investing strategies applied in serving to reduce or minimize a client's overall tax liabilities, or as to the tax results that may be generated by a given transaction. Tax-smart investing strategies, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, Strategic …
There is no minimum required to open an account; however, in order for us to invest your money according to the investment strategy you've chosen, your account balance must be at least $5,000. Until you reach that balance, any securities used to fund your account will be unmanaged, and any cash deposited into your account will be invested in your core money market fund. Your account may be closed if that balance is not reached. There is no minimum required to open an account; however, in order for us to invest your money according to the investment strategy you've chosen, your account balance must be at least …
Tax savings will vary from client to client and past performance is no guarantee of future results; there is no guarantee that tax savings will cover the net advisory fee now or in the future.
Factors that could impact the value of our tax-smart investing strategies include market conditions, the purchase date and cost basis of any securities used to fund an account, client-imposed investment restrictions,
client tax rate, and any changes in tax regulation. This analysis is based on performance of all investment strategies offered in Fidelity Managed FidFolios® and substantially similar strategies offered through
Fidelity® Strategic Disciplines from 08/01/2015 through 12/31/2023. The analysis includes identifying the total amount of capital gains tax savings for each individual client account, and the total amount of
net advisory fees paid for each individual client account (accounts that did not pay a fee were excluded from the analysis). We estimate potential capital gains tax savings by multiplying each harvested tax loss by
the relevant short- or long-term capital gains tax rate for each client account at the end of each year. Our analysis assumes that any losses realized are able to be offset against gains realized inside or outside of
the client account during the year realized. However, all capital losses harvested in a single tax year may not result in a tax benefit for that year. Remaining unused capital losses may be carried forward to offset up to $3,000 of ordinary income per year.Tax savings will vary from client to client and past performance is no guarantee of future results; there is no guarantee that tax savings will cover the net advisory fee now or in the future.
Factors that could impact the value of our tax-smart investing strategies …
The advisory fee does not cover charges resulting from trades effected with or through broker-dealers other than Fidelity affiliates, mark-ups or mark-downs by broker-dealers, transfer taxes, exchange fees, regulatory fees, odd-lot differentials, handling charges, electronic fund and wire transfer fees, or any other charges imposed by law or otherwise applicable to a managed account. Investors will also incur underlying expenses, if any, associated with the investment vehicles selected for the account. The advisory fee does not cover charges resulting from trades effected with or through broker-dealers other than Fidelity affiliates, mark-ups or mark-downs by broker-dealers, transfer taxes, exchange fees, regulatory fees, odd-lot differentials, handling charges, electronic …
Environmental Footprint: Comparison is based on a sample portfolio invested in accordance with the Environmental Strategy. Holdings in your portfolio could differ from those in the sample portfolios and, therefore, the environmental footprint of your account may differ from that of the sample portfolio. Data is compiled by third-party sources that FMRCo, the sustainable universe provider, believes to be reliable, but neither FMRCo', FPWA, nor Strategic Advisers can guarantee the accuracy of any such third-party information. Data is limited by the fact that issuers in the investment universe are not subject to reporting requirements for some of the footprint metrics. Data is provided for informational purposes only and should not be relied upon by clients when making investment decisions or for any other purpose. The metrics shown on this page are calculated solely by Fidelity using certain information provided by MSCI ESG Research LLC (the "Information"). Although Fidelity information providers, including MSCI ESG Research LLC and its affiliates (the "ESG Parties"), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of the Information provided. The ESG Parties do not claim that the Information can or should be used for any particular purpose. None of the Information in and of itself can be used to decide when or whether to invest in a particular product or security. None of the ESG Parties shall have any liability for any errors or unintentional omissions in connection with any Information or with any damages related to the Information or its use. Environmental Footprint: Comparison is based on a sample portfolio invested in accordance with the Environmental Strategy. Holdings in your portfolio could differ from those in the sample portfolios and, therefore, the environmental footprint of your account may differ …
Top Positions, Sectors, and Characteristics information provided compares information
about the sample portfolio for the Fidelity Managed FidFolios® U.S. Large Cap Index strategy
(the "Sample Portfolio") and the strategy's benchmark index, the Fidelity U.S. Large Cap Index℠.
This information is provided to help you understand the overall composition of the Sample Portfolio,
which provides the basis for trading in all Fidelity Managed FidFolios® Environmental Focus Strategy accounts.
Because each client account may hold only a subset of the securities held in the Sample Portfolio and may hold
securities in different weights than the Sample Portfolio, the overall portfolio information for any one client
account may differ, perhaps significantly, from the Sample Portfolio.Top Positions, Sectors, and Characteristics information provided compares information
about the sample portfolio for the Fidelity Managed FidFolios® U.S. Large Cap Index strategy
(the "Sample …
The composite returns represent the asset-weighted performance of accounts in the Fidelity® Environmental Focus Strategy of Fidelity® Strategic Disciplines and the asset-weighted performance of accounts in the Environmental Focus Strategy of Fidelity Managed FidFolios®.
Returns for the Environmental Focus Strategy of Fidelity Managed FidFolios® were included in the composite beginning on June 30, 2021 on a pre-tax basis and December 31, 2021 on an after-tax basis.
Returns for Fidelity® Environmental Focus Strategy of Fidelity® Strategic Disciplines were included in the composite beginning on June 30, 2024 on a pre-tax and after-tax basis.
The Environmental Focus Strategy accounts of Fidelity Managed FidFolios® included in the composite are generally subject to a flat fee and can be higher than the breakpoint fee schedule for Fidelity® Environmental Focus Strategy accounts for Fidelity® Strategic Disciplines.The composite returns represent the asset-weighted performance of accounts in the Fidelity® Environmental Focus Strategy of Fidelity® Strategic Disciplines and the asset-weighted performance of accounts in the …
Market indexes are included for informational purposes and for context with respect to market conditions. All indexes are unmanaged, and performance of the indexes includes reinvestment of dividends and interest income, unless otherwise noted. Review the definitions of indexes for more information. Please note an investor cannot invest directly into an index. Therefore, the performance of securities indexes do not incorporate or otherwise reflect the fees and expenses typically associated with managed accounts or investment funds.
Information about the calculation of account and composite returns. Returns for periods of one year or less in duration are reported cumulative. Returns for periods greater than one year may be reported on either a cumulative or average annual basis. Calendar year returns reflect the cumulative rates of return for the 12-month period from January 1 to December 31, inclusively, of the year indicated.
Reported rates of return utilize a time-weighted calculation, which vastly reduces the impact of cash flows. Returns shown assume reinvestment of interest, dividends, and capital gains distributions. Assets valued in U.S. dollars. Performance for accounts managed without tax-smart investing techniques begins when assets are available in the account. Performance for accounts managed with tax-smart investing techniques (“tax-smart accounts”) begins after the Investment Manager reviews the account and deems it ready for investment in the chosen strategy.
Rates of return shown are net of the actual investment advisory fees paid for each account, and are net of any applicable fee credits, any underlying fund's own management fees and operating expenses, and for certain Fidelity Wealth Services accounts the fees attributable to separately managed account sleeves. Performance information presented for an investment advisory program offered by Fidelity Personal Workplace Advisors LLC (“FPWA”) includes performance for accounts enrolled in legacy programs previously offered and managed by FPWA’s affiliate, Strategic Advisers LLC, for periods prior to July 2018. Fees for these legacy programs differ from current fee schedules for FPWA’s programs, and fees for accounts enrolled in those legacy programs may have been higher or lower than FPWA’s current fees. Fee structures and the services offered have changed over time. Please consult a Fidelity financial advisor or the applicable investment advisory program’s current Program Fundamentals for current fee information. Additional information about our methodology for calculating pre- and after-tax performance return information is available at Fidelity.com/information in a document titled “About Performance.”
Assumptions used in calculating after-tax returns. After-tax rate of return measures the performance of an account, taking into consideration the impact of a client’s U.S. federal income taxes, based on the activity in the account. Strategic Advisers does not actively manage for alternative minimum taxes; state or local taxes; foreign taxes on non-U.S. investments; federal tax rules applicable to entities; or estate, gift, or generation-skipping transfer taxes. Strategic Advisers relies on information provided by clients in an effort to provide tax-sensitive investment management and does not offer tax advice. Any realized short-term or long-term capital gain or loss retains its short- or long-term characteristics in the after-tax calculation. The gain/loss for any account is applied in the month incurred and there is no carryforward. We assume that taxes are paid from outside the account. Taxes are recognized in the month in which they are incurred. This may inflate the value of some short-term losses if they are offset by long-term gains in subsequent months. After-Tax Returns do not take into account the tax consequences associated with income accrual, deductions with respect to debt obligations held in client accounts, or federal income tax limitations on capital losses. Withdrawals from client accounts during the performance period result in adjustments to take into account unrealized capital gains across all securities in such account, as well as the actual capital gains realized on the securities. Adjustments for reclassification of dividends from non-qualified to qualified status that occur in January of the subsequent year, are reflected in the prior December monthly returns. We assume that a client reclaims in full any excess foreign tax withheld and is able to take a U.S. foreign tax credit in an amount equal to any foreign taxes paid, which increases an account’s after-tax performance; the amount of the increase will depend on the total mix of foreign securities held and their applicable foreign tax rates, as well as the amount of distributions from those securities.
We assume that losses are used to offset gains realized outside the account in the same month, and we add the imputed tax benefit of such a net loss to that month’s return. This can inflate the value of the losses to the extent that there are no items outside the account against which they can be applied, and after-tax returns may exceed pre-tax returns as a result of an imputed tax benefit received upon realization of tax losses. Our after-tax performance calculation methodology uses the full value of harvested tax losses without regard to any future taxes that would be owed on a subsequent sale of any new investment purchased following the harvesting of a tax loss. That assumption may not be appropriate in all client situations but is appropriate where (1) the new investment is donated (and not sold) by the client as part of a charitable gift, (2) the client passes away and leaves the investment to heirs, (3) the client’s long-term capital gains rate is 0% when they start withdrawing assets and realizing gains, (4) harvested losses exceed the amount of gains for the life of the account, or (5) where the proceeds from the sale of the original investment sold to harvest the loss are not reinvested. It is important to understand that the value of tax-loss harvesting for any particular client can only be determined by fully examining a client’s investment and tax decisions for the life the account and the client, which our methodology does not attempt to do. Clients and potential clients should speak with their tax advisors for more information about how our tax-loss harvesting approach could provide value under their specific circumstances.
Information about composite returns. The rates of return featured for accounts managed to a long-term asset allocation represent a composite of accounts managed with the same long-term asset allocation, investment approach and investment universe as applicable; rates of return featured for accounts managed with a single asset class strategy represent a composite of accounts managed to the applicable strategy. Accounts included in the composite utilize a time-weighted calculation, which vastly reduces the impact of cash flows. Composites are asset-weighted. An asset-weighted methodology takes into account the differing sizes of client accounts (i.e. considers accounts proportionately). Larger accounts may, by percentage, pay lower investment advisory fees than smaller accounts, thereby decreasing the investment advisory fee applicable to the composite and increasing the composite’s net-of-fee performance. For tax-smart accounts in Fidelity Wealth Services, composite results are based on the returns of the managed portion of the accounts; assets in a liquidity sleeve are excluded from composite performance.
Composites set minimum eligibility criteria for inclusion. Accounts with less than one full calendar month of returns and accounts subject to significant investment restrictions are excluded from composites. Accounts with a do-not-trade restriction are removed from the composite once the restriction has been applied to the account for thirty days. For periods prior to October 1, 2022, composite inclusion required a minimum investment level that reflected product-relative investment requirements. Effective October 1, 2022, product composites will reflect all accounts for which we produce a rate of return and that meet the aforementioned criteria. Non-fee paying accounts, if included in composite, will increase the net-of-fee performance. Certain products, like Fidelity Go, offer investment services where accounts under a certain asset level do not incur investment advisory fees. Employees do not incur investment advisory fees for certain products.
Information about after-tax composite benchmarks. Return information for an after-tax benchmark represents an asset-weighted composite of clients’ individual after-tax benchmark returns. Each client’s personal after-tax benchmark is composed of mutual funds (index funds where available) and ETFs in the same asset class percentages as the client’s investment strategy. The after-tax benchmark uses mutual funds and ETFs as investable alternatives to market indexes in order to provide a benchmark that takes into account the associated tax consequences of these investable alternatives. The after-tax benchmark returns implicitly take into account the net expense ratio of their component mutual funds because mutual funds report performance net of their expense. They assume reinvestment of dividends and capital gains, if applicable. The after-tax benchmark also takes into consideration the tax impact of rebalancing the benchmark portfolio, assuming the same tax rates as are applicable to each client’s account, as well as an adjustment for the level of unrealized gains in each account. The after-tax composite benchmark return is calculated assuming the use of the “average cost-basis method” for calculating the tax basis of mutual fund shares.
Additional Information. Changes in laws and regulations may have a material impact on pre- and/or after-tax investment results. Strategic Advisers LLC relies on information provided by clients in an effort to provide tax-smart investing techniques. Strategic Advisers LLC can make no guarantees as to the effectiveness of the tax-smart investing techniques applied in serving to reduce or minimize a client’s overall tax liabilities or as to the tax results that may be generated by a given transaction. Neither FPWA nor Strategic Advisers LLC provides tax or legal advice. Please consult your tax or legal professional for additional guidance. For more information about FPWA, Strategic Advisers LLC, or FPWA’s advisory offerings, including information about fees and investment risks, please visit our website at Fidelity.com.
The information contained herein includes information obtained from sources believed to be reliable, but we do not warrant or guarantee the timeliness or accuracy of the information as it has not been independently verified. It is made available on an "as is" basis without warranty.
This account type is a single asset class that offers a concentrated exposure. Please note, Fidelity recommends clients diversify and rebalance their investments across multiple asset classes, sectors, and issuers in an effort to reduce the investment risk associated with holding concentrated investments. Keep in mind however, that diversification and asset allocation do not ensure a profit or guarantee against loss. This account type is a single asset class that offers a concentrated exposure. Please note, Fidelity recommends clients diversify and rebalance their investments across multiple asset classes, sectors, and issuers in an …
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.
The Top Positions represent the largest 10 holdings of the Sample Portfolio as of the date noted. Holdings are subject to change without notice, may not be representative of the Sample Portfolio's current or future holdings, and are not intended as recommendations of individual securities. There is no guarantee that any of these holdings will be included in any particular account. The Top Positions represent the largest 10 holdings of the Sample Portfolio as of the date noted. …
Environmental Focus Investing Risk. Because of the subjective nature of environmentally sustainable investing, there can be no guarantee that environmental sustainability criteria used by Fidelity will reflect the beliefs or values of any particular client. The incorporation of environmental sustainability factors can affect an account’s exposure to certain companies or industries and may not work as intended. Clients should understand that the application of environmental sustainability criteria does not mean that an Environmental Focus Strategy account will exclude any and all security issuers that are deemed to have negative environmental sustainability characteristics; rather, the application of environmental sustainability criteria is intended to create an investment universe that has a more favorable aggregate environmental rating, as measured by Fidelity, than the Large Cap Index. Please read the advisory program's Form ADV Program Fundamentals for additional information related to the Fidelity Environmental Focus Strategy's risks. Environmental Focus Investing Risk. Because of the subjective nature of environmentally sustainable …
The Fidelity U.S. Large Cap Index℠ is a float-adjusted market capitalization–weighted index designed to reflect the performance of the stocks of the largest 500 U.S. companies based on float-adjusted market capitalization. Indexes are unmanaged. It is not possible to invest directly in an index. Securities indices are not subject to fees and expenses typically associated with managed accounts or investment funds. The Fidelity U.S. Large Cap Index℠ is a float-adjusted market capitalization–weighted index designed …
The sector weightings use the Global Industry Classification Standard (GICS), which is based on information provided by Standard & Poor’s Financial Services LLC (S&P), an independent company not affiliated with Fidelity.
The portfolio characteristics provided are indicative of the characteristics the portfolio manager considers when managing the strategy. Due to Strategic Advisers' rebalancing and trading strategy, the securities held in your account may differ materially from the Sample Portfolio.
*Average securities per the Sample Portfolio.
Source: FactSet and Fidelity Investments Information.
Portfolio characteristics calculations do not reflect the impact of fees.
Definitions: Dividend Yield refers to the annualized rate of return from dividends on a stock investment. It is calculated by dividing the annual dividends per share by the stock’s month end closing price. It does not take into account other forms of returns, such as those from capital gains.
3-Year Earnings per Share Growth is calculated by taking a corporation’s net income available for common stock divided by its number of shares of common stock outstanding over the previous three fiscal years.
Long-Term Debt to Capitalization Ratio is calculated by dividing a company’s total long-term debt outstanding by the total capitalization of the company (all debt plus all equity).
Predictive Beta is one measure of a portfolio’s sensitivity to market movements (as represented by a benchmark index). The benchmark index has a beta of 1.0. A beta of less (or more) than 1.0 indicates that the portfolio would have fluctuated less (or more) than the benchmark index. Predictive Beta is calculated utilizing available month-end portfolio and benchmark stock-level characteristics such as earnings /price ratio, market capitalization, and industry membership, amongst others, along with the historical variances and correlations of the returns associated with those characteristics. The calculation utilizes a data history of five years. The beta calculation is not based exclusively on historical returns. Predictive Beta is one measure of a portfolio’s sensitivity to market movements (as represented by a benchmark index). The benchmark index has a beta of 1.0. A beta of less (or more) than 1.0 …
Price/Earnings (P/E) Ratio refers to the price of a security at the close of the last day in the period divided by its last 12 months’ reported primary earnings per share (EPS).
Price/Book (P/B) Ratio refers to the price of a security at the close of the last day in the period divided by the latest quarter’s book value per share. Book value is the value at which an asset is carried on a company’s balance sheet.
Price/Sales Ratio is calculated by dividing a stock’s current price by its revenue per share for the trailing 12 months.
Fidelity Managed FidFolios® and Fidelity® Strategic Disciplines are advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA),
a registered investment adviser, for a fee.
Fidelity® Strategic Disciplines includes the Fidelity® Environmental Focus Strategy. Fidelity Managed FidFolios® includes the Environmental Focus Strategy, the U.S. Large Cap Index Strategy, the International Index Strategy,
the U.S. Total Market Index Strategy, the U.S. Low Volatility Index Strategy, the Dividend Income Strategy, the U.S. Large Cap Strategy, and the International Strategy. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FBS and NFS are Fidelity Investments companies.
FPWA has engaged Strategic Advisers LLC, a registered investment adviser and a Fidelity Investments company, to provide the day-to-day discretionary portfolio management of Fidelity Managed FidFolios® accounts,
including investment selection and trade execution, subject to FPWA’s oversight.
Effective March 31, 2025, Fidelity Personal and Workplace Advisors LLC (FPWA) will merge into Strategic Advisers LLC (Strategic Advisers). Any services provided or benefits received by FPWA as described above will, as of March 31, 2025,
be provided and/or received by Strategic Advisers. FPWA and Strategic Advisers are Fidelity Investments companies.
