Fidelity Investments Forges Alliance With Low-Cost Player
By Ron Lieber
Betterment and FutureAdvisor have made a lot of noise in the past few years about doing things differently from old-fashioned investment firms. The pair are part of a fast-growing group of software companies that put customers in index funds or related investments and that manage their portfolios for a relatively low cost.
Fidelity Investments appears not to be taking offense. It announced Wednesday that it would team up with Betterment and encourage Fidelity-affiliated financial advisers to use its service. The move follows a revelation this week that a firm affiliated with Fidelity’s parent company invested in FutureAdvisor in May.