Fidelity sees two zero-fee index funds rake in almost $1 billion in first month

The Fidelity Zero Total Market Index Fund attracted $753.5 million, while the Fidelity Zero International Index Fund drew in $234.2 million

Sep 4, 2018 @ 11:26 am

By Bloomberg News

Investors poured almost $1 billion into Fidelity Investments' two zero-fee index funds in their first month of operation.

The Fidelity Zero Total Market Index Fund attracted $753.5 million through Aug. 31, while the Fidelity Zero International Index Fund gathered $234.2 million, according to Fidelity's website.

Fidelity's unveiling of the funds Aug. 1 is the latest chapter in an ongoing price war for assets that track indexes. Vanguard Group, BlackRock Inc. and Charles Schwab Corp. have all been slashing fees on passive products to as little as a few pennies per $100 invested.

Fidelity has been matching rivals step for step. Although the firm built its reputation on the strength of its stock pickers, the Boston-based company has been aggressively pursuing passive assets, which have doubled to about $400 billion over the past three years. Fidelity's largest stock fund is now an index fund, the $165 billion Fidelity 500 Index Fund.

So far none of Fidelity's rivals have chosen to match its zero-fee offer.

0
Comments

What do you think?

View comments

Most watched

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

INTV

Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.

Latest news & opinion

Vermont establishes restitution fund for victims of investment fraud

Portion of settlements with financial perpetrators would supply the pool.

10 IBDs with the most variable annuity revenue

Although the popularity of VAs has declined in recent years, some independent broker-dealers still do a good business in them.

Target-date fund design may be wrong for retirees

Researchers suggest the funds don't adequately hedge against sequence-of-returns risk in retirement.

InvestmentNews' 2019 class of 40 Under 40

Our 40 Under 40 project, now in its sixth year, highlights young talent in the financial advice industry. These individuals illustrate the tremendous potential of those coming up in the profession. These stories will surprise, entertain, educate and inspire.

New Jersey fiduciary rule: Pressure leads to public hearing, comment deadline extension

Industry push results in chance to air grievances on July 17 and another month to present objections.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print