Fidelity Investor Review
Ease of Use
In the market for a new investing newsletter? Fidelity Investor is a newsletter from Chief Investment Officer, Jim Lowell. This newsletter focused on Fidelity’s fund offerings, showing how to use them to build 9 model portfolios designed for long-term investors. This newsletter also features trading strategies, 401(k)models, a correlation tool, and more. Should you start reading this newsletter? Find out in our complete Fidelity Investor review!
Fidelity Investor is a newsletter from InvestorPlace run by Jim Lowell. Lowell is a former fund manager himself and the Chief Investment Officer for Adviser Investments. He’s also the author of the books From Scratch, Smart Money Moves, and What Every Fidelity Investor Needs to Know.
With Fidelity Investor, Lowell focuses in on Fidelity’s fund offerings to build 7 model portfolios for long-term investors. The newsletter is particularly geared towards anyone who has an employer-sponsored retirement plan with Fidelity. Lowell also offers trading strategies that active investors can use to make short-term profits from Fidelity’s fund lineup.
So, is Lowell’s newsletter right for you? We’ll cover everything you need to know in our full Fidelity Investor review.
Fidelity Investor Pricing Options
Fidelity Investor costs $34.95 per quarter. When you sign up for your first quarter, you get 3 months free.
Fidelity Investor is centered around 9 model portfolios, all of which are comprised of Fidelity ETFs and mutual funds:
- Global Quantitative Growth – Global stock funds with a focus on the US and China
- Global Quantitative Income – Global government and corporate bond funds
- Growth – US and China stocks with a tilt towards tech and finance funds
- ESG Growth – US stocks in Fidelity’s sustainable investing funds
- Factor + – A mix of US dividend, real estate, and bond funds
- Growth & Income – Blend of stock and bond funds
- Income – Dividend, real estate income, and bond funds
- Annuity Growth – Fidelity VIP managed funds focused on the US and global stocks
- Annuity Growth & Income – Fidelity VIP managed funds focused on US stocks and bonds
Each portfolio consists of 5-10 Fidelity funds. Fidelity Investor delineates the percentage that each fund contributes to the portfolio so you can assemble it yourself within your Fidelity account.
Fidelity Investor’s portfolios are relatively conservative and, as a result, have lagged the major US stock indices in recent years. Through the first half of 2021, the Growth portfolio has returned just 9.1% compared to 18.1% for the S&P 500. The same portfolio has an average annualized 5-year return of 13% compared to 18.2% for the S%P 500.
Fidelity Investor Features
Newsletter & Updates
Fidelity Investor issues a newsletter at the beginning of each month to provide updates on the model portfolios and Lowell’s thoughts on the market environment. At the beginning of each newsletter, you’ll find a table showing key statistics about each portfolio, including its correlation with the S&P 500, its volatility, and its 12-month performance.
The newsletter then goes into more detail about the contents of each portfolio, showing the monthly return of each of the constituent funds. You’ll also find details about hundreds of Fidelity mutual funds and ETFs – including funds that aren’t in Fidelity Investor’s portfolios. Lowell issues buy/sell/hold ratings for each fund, which is helpful if you want to supplement the model portfolios or take a more aggressive approach to investing. On top of that, the newsletter highlights ‘Tactical Offense’ and ‘Tactical Defense’ opportunities, which are short- to medium-term adjustments you can make to the model portfolios to take advantage of market conditions.
Lowell also offers his thoughts on the market in each newsletter. You’ll find a broad discussion of market conditions that explains how Lowell and the Fidelity Investment team are navigating economic updates. In addition, Lowell typically focuses in on one portfolio to discuss how it’s been performing and the rationale behind its composition.
In between newsletters, Lowell offers brief weekly updates on the market. If there are any trades to be made in the model portfolios, they’ll be highlighted in these weekly updates as well as in the next newsletter issue.
Fidelity Investor offers 4 trading strategies that investors can use to invest more aggressively in Fidelity’s funds. One trading strategy, called ‘Genesis,’ is based around buying Fidelity’s newest funds right when they launch and then selling them a year later. That strategy has produced a 200% gain over the past 5 years, in line with the S&P 500.
The trading strategies are also covered in the monthly newsletter when there’s a buying or selling order to share.
For investors who have an employer-sponsored 401(k) with Fidelity, Fidelity Investor offers customized model portfolios. Fidelity Investor collects data about what funds are available in the Fidelity investment plans for over 120 major employers, including companies like Microsoft and AT&T. Based on this, you’ll find adaptations of the model portfolios that are specific to the funds available in your 401(k).
Another useful tool that Fidelity Investor offers for more self-directed investors is its correlation calculator. You can select any two Fidelity mutual funds or ETFs and the tool will instantly tell you how correlated their performance is.
Fidelity Investor Service Differentiators
Fidelity Investor set out with a different purpose than most other investment newsletters available today. Rather than try to build a portfolio of the best growth stocks or the best dividend stocks, Fidelity Investor’s goal is to build the best possible portfolios out of only Fidelity funds.
That’s important because Fidelity is one of the largest investment firms for employer-sponsored retirement plans, in which investors only have access to Fidelity funds. So, while Fidelity mutual funds and ETFs may or may not be the optimal way to invest, there’s a clear need to make the best investment strategy possible based only on Fidelity’s offerings.
Another thing that’s unique about Fidelity Investor is that it’s not solely focused on long-term investing. Lowell and his team offer medium-term trading strategies that enable investors to trade more aggressively around Fidelity’s funds. In addition, each newsletter offers fund ratings and short-term investment opportunities that can help self-directed investors put together their own portfolios.
What Type of Trader is Fidelity Investor Best For?
Fidelity Investor is designed for investors who have an employer-sponsored retirement account with Fidelity. The platform’s portfolios are designed on the premise that you can only invest in Fidelity mutual funds and ETFs, which is often the case for Fidelity retirement accounts. Historically, Fidelity Investor’s portfolios have underperformed the S&P 500, so they may not be the best choice for investors who have options beyond Fidelity.
That said, Fidelity Investor may also make sense for long-term investors who want to build diversified portfolios out of Fidelity’s mutual funds and ETF offerings. The fund’s 9 portfolios cover everything from growth to income investing, and it’s easy to build your own portfolios using the fund ratings provided in each newsletter.
- 9 model portfolios built from Fidelity funds
- Monthly newsletter with detailed fund coverage
- Strategies for medium-term Fidelity fund trading
- Specific portfolios for major employer-sponsored Fidelity 401(k) plans
- Correlation tool for Fidelity funds
- Portfolios have historically underperformed the S&P 500