BlackRock vs. Facet: what’s the difference?

Summary 

Facet vs. BlackRock: What’s the difference? 

Founded in 2016, Facet is a fintech company that is one of the new kids on the block in financial advisory services. Its core values are bringing financial well-being to people from all walks of life and advising them on managing their money at all stages of their lives. 

Facet is a registered investment advisor (RIA) with the Securities and Exchange Commission (SEC). To become a client (member, in Facet terminology), an individual consults with a sales rep who ascertains your needs. If Facet’s financial services meet your needs, you will connect with your advisor, a certified financial planner (CFP) who is also a fiduciary. Meetings are held via video chat, email, and phone, taking place a few times a year. 

BlackRock is the biggest investment company in the U.S., with approximately $10.5 trillion in AUM after the first quarter of 2024. It has 70 offices across 30 countries. BlackRock serves a broad spectrum of clients, ranging from individuals with and without a high net worth to institutions like charities, pension funds, real estate investment trusts (REITs), and investment funds, amongst others. 

As RIAs, BlackRock financial advisors are obliged to act as fiduciaries for their clients. However, some are licensed broker-dealers with no fiduciary requirements when acting as brokers. 

What are BlackRock and Facet’s Specific Investment Strategies? 

BlackRock financial advisors offer investment management and portfolio management via many different programs and accounts. They also provide some financial planning services.  

BlackRock’s active strategies include fixed income, fundamental equities, alternatives, multi-asset strategies and solutions, and systematic investing. It also offers retirement planning, cash management, target date funds, and factor-based investing. 

Facet offers comprehensive financial advice and investment management for every stage of life. This may include retirement planning, asset management, stock option plans, debt management, life planning, insurance planning, estate planning, planning for education, income tax strategies, and legacy planning.

What fees can I expect from BlackRock and Facet? 

BlackRock is a fee-based financial firm that charges various fees depending on the type of account a client opens and the specific investment strategy chosen. There is a management fee, typically calculated as a percentage of AUM.  

Clients participating in a wrap fee program also pay a comprehensive fee based on their AUM, which sometimes includes the management fee. BlackRock fees may also include hourly fees, administration fees, custodial charges, commissions, brokerage fees, transfer and registration fees, and more. 

Facet fees are based on a different model. It is a fee-only financial company charging a flat annual rate, ranging between $2,000 and $6,000, depending on the services clients use. Facet fees also include a $250 enrollment fee. However, advisors may waive this fee during promotions or if you pay your annual fees upfront.  

Is BlackRock or Facet Better? 

Whether BlackRock or Facet financial services is a better option can be better seen by looking at each one’s pros and cons. 

Pros of BlackRock 

Cons of BlackRock 

Pros of Facet 

Cons of Facet 

Facet or BlackRock: Which should I choose? 

Deciding between Facet and BlackRock will ultimately depend on your financial objectives. However, in addition to the pros and cons, fees, and strategies, clients should ask themselves the following questions to give a clearer perspective on which financial firm would be their best option.  

How do Facet and BlackRock remain competitive and adapt to changing market conditions? 

Facet is planning its next growth phase by focusing on providing financial solutions to an increasing number of working-class clients, reducing the flat annual fee, and offering project-based fees for one-off financial planning consultations. 

One way that BlackRock remains competitive in a rapidly evolving industry is by investing in Bitcoin mining companies. It has also shut down its robo-advisor division, FutureAdvisor, as it has a minimal profit margin and did not attract enough clients. 

Which platform provides better customer service and support? 

Both companies are easily reachable by email and phone. BlackRock has offices in numerous cities worldwide, where clients can consult with advisors. BlackRock’s disciplinary and conflict alerts could make clients question their reliability. 

Some clients who prefer face-to-face visits may consider Facet’s customer service lacking, as they offer online-only consultations.  

Can I access my Facet or BlackRock accounts through their websites and mobile apps? 

BlackRock boasts the BlackRock Insights App, which is only available for institutional clients. Individuals can access their accounts via the website. Facet clients can also access their accounts via the website.  

Get expert financial advice 

The two firms are rather different, with BlackRock focusing more on traditional investment strategies and Facet offering a more alternative approach. Their client base, fees, and requirements are also varied, so choosing the right option will depend on an investor’s needs and circumstances. 

Let Unbiased match you with the right professional SEC-regulated financial advisor who will create a tailored strategy based on what you need.