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The AUM Legend among legends

Fidelity is infinite

Fidelity Investments recently reported that its assets under administration topped $12 trillion – a staggering figure that highlights interesting trends on consumer and economic trends. This milestone reflects how investor behavior has evolved in the past decade. A major factor is the relentless shift of investors towards passive investing and index funds, often through retirement plans and brokerage accounts that Fidelity administers. In 2023, despite volatile markets, Fidelity saw enormous net inflows (~$647 billion) thanks in large part to their unrelenting retirement and 401(k) business.

Fidelity surpassing $12T is a landmark that mirrors broad confidence in markets and the ascendancy of passive investing. Crossing $12 trillion puts Fidelity in elite company. How does it stack up against BlackRock and Vanguard, the other asset management behemoths? BlackRock, with about $9–10 trillion in AUM, is the world’s largest asset manager and is heavily institutional. Vanguard, with around $8 trillion, pioneered the index fund revolution for retail investors and is owned by its fund shareholders, enabling ultra-low fees. Where Fidelity has an edge is in being a full-service financial supermarket: it not only manages funds, but also provides brokerage services, retirement plan administration, wealth management platforms, etc. This breadth helped it accumulate such a large asset base.