Fidelity launches two more zero-fee funds

One fund will track an index of large-cap companies and the other an index of midsize and small firms

Sep 13, 2018 @ 8:59 am

By Bloomberg News

Fidelity Investments said it will start two additional zero-expense-ratio mutual funds, stepping up its push to lure cost-conscious individual investors.

The Fidelity Zero Large Cap Index Fund and the Fidelity Zero Extended Market Index Fund will be available beginning Tuesday, Fidelity said in a statement Wednesday.

The fund manager has gathered about $1 billion since creating the industry's first free index mutual funds in early August: the Fidelity Zero Total Market Index Fund and the Fidelity Zero International Index Fund.

Fidelity's initial salvo caught attention across the money-management industry as companies compete for customers by slashing expenses.

(More: Fidelity's zero-fee funds unleash the power of free)

"Fidelity is looking to improve its competitive positioning and marketing effort against other brokers including Schwab, TD Ameritrade, Vanguard and Bank of America with its Zero Index Fund launch and improve its net new asset levels," analysts at Credit Suisse Group led by Craig Siegenthaler wrote in a Sept. 4 note.

Fidelity has about $7.2 trillion under administration, including $2.6 trillion of managed assets. Its new Large Cap fund will track an index of large-capitalization companies, while the Extended Market fund will track an index of small and midsize firms.

(More: Mutual fund fee wars will encourage bad behavior)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

How InvestmentNews picks its Women to Watch winners

The process is laborious and exacting, but well worth it. The end result each year is an impressive group of women in the advice industry from whom others can draw inspiration.

Latest news & opinion

Ohio National offers buyouts, ends commission trails amid jumbled regulatory oversight of VAs

Jurisdiction is shared between the SEC, Finra and state insurance commissioners. Will any of them step in?

6 mistakes advisers make when onboarding new clients

Starting a new relationship with a client is harder than it looks.

TCA by E*Trade lures Edelman Financial Engines with promise of client referrals

Access to clients through E*Trade's 30 branch offices drew the attention of RIA Edelman Financial Engines.

10 states with lowest overall tax burden

Here's a list of the states with the lowest total tax burden from Wallet Hub.

7 surprising things Medicare doesn't cover

Gaps in Medicare's coverage can wreak havoc with a retiree’s budget, but here are some solutions to help your clients fill the gaps.

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