That seems like a complete conflict of interest. Do you mean that they require you to have your account managed, for a fee, in order to get matching funds?
No, we just have to choose from a list of funds that are in our Fidelity account. I just pick the one with the lowest fees, but they aren't quite as good as a Vanguard fund.
Well, that's exactly what Kivalia does; helps you decide which funds to own at any point in time - and how to combine them. Of course you have to create the list at Kivalia, but then you're good to go - immediately and quarter after quarter.
Low fees are clearly better than higher fees, but you probably won't be able to build a very diversified portfolio based on selecting investments based solely on fees. For example,international investments will always be more expensive than domestic, small caps will be pricier than large, etc.
If you're selecting lowest fee fund within specific classes, that will probably serve you relatively well...of course then you need to weight the fund classes. How do you handle that decision?