9 things RIAs need to know about Fidelity's pricing moves on equities and ETFs
The trade commissions grab headlines but ETF cuts are a glimpse of the future
Now that advice is no longer incidental to trade execution, but trade execution is now incidental to advice, Schwab has started a chain reaction of events which will have a profound im pact on the industry going forward as evidenced by Fidelity following suite. This is just the beginning of what is comming, that will permanently change the industry’s competitive landscape.
Schwab’s move to waive ETF cost was a conscious and brilliant move to accelerates the industry’s move to address and manage investment and administrative values in the best interests of the consumer from the industry’s historical focus on commission sales of investment products.
The difference is, as the industry belatedly focuses on cost and the effectiveness of portfolio construction, it will gravitate toward (1) faster (real time transparency), (2)better (a much more disciplined approach with far superior results) and (3) cheaper (overlay management, real time buy/sell manager research and the tactical discipline to proactively manage risk exposure as market conditions change, all for less than 20 bps) approach to portfolio construction that will (1)better compensate advisors,(2)provide superior results at a (3)far lower cost consistent with fiduciary duty.
Doing more with less works. How would you like to make more money, better serve your clients with superior results and fiduciary standing and do so less expensively than a packaged product? It’s comming.
Joanna Rotenberg is departing Fidelity Investments after only two years, writing that she traveled 20,000 miles and successfully split her retail division into wealth and brokerage units
At her hire, analysts were adamant the head of Fidelity retail had 'big shoes to fill' to replace legendary Kathleen Murphy and her task of 'digitiizing' retail was no small ask
December 16, 2023 at 2:22 AM
Biz Briefs: AdvicePay waives key hiring requirement to land its next CEO • ESG firms may get OK in Oklahoma • eMoney adds new chiefs • CFP Board names new chair-elect • Robinhood cuts more staff
Alan Moore replaces himself with another guy with two respectable titles • eMoney promotes two • Moisand's third in line now known • Robinhood sacks 173 in year-to-date.
July 26, 2023 at 2:34 AM
Biz Briefs: The sorry scene at my local First Republic branch • Schwab launches new (smaller) lay-off round • Schwab hoovers pennies passing FINRA fee to clients • Gensler pleas for funds • Fidelity owner's private equity pres. retires • an Orion-Envestnet staff switcheroo • LPL dumps FutureAdvisor
Range Rovers screeched in and drivers joined a grim queue to get their cash, and cookie • The Schwab-TDA deal cull count now stands at roughly 3.5% of its staff • FMR's hockey star president has stepped down • SEC chief wants more enforcers • An Envestnet executive proves joining a rival is good business • LPL now has an in-house robot.
April 29, 2023 at 1:36 AM
Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance
Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.
March 25, 2023 at 1:32 AM
See more related moves
Top Executive: Joe Mansueto