BOSTON--(BUSINESS WIRE)--Fidelity Investments® today announced that all the newly price-reduced US iShares Core ETFs are available commission-free ETF on Fidelity.com, demonstrating its ongoing commitment to provide the best ETF value in the industry.
This move builds on Fidelity’s alliance with BlackRock®, Inc. (NYSE: BLK), the industry-leading ETF provider, to include all 18 iShares Core ETFs in its commission-free offering. All of these ETFs have a lower expense ratio than Vanguard and State Street counterparts, and Fidelity is the only provider that offers all 18 iShares Core ETFs commission-free to advisors and investors.
This price reduction follows Fidelity's expense reductions for 27 of its leading equity and bond index mutual funds and sector ETFs, making the expenses lower than their Vanguard counterparts. Expenses start at.045%1 for Fidelity’s 16 index mutual funds and .084% for Fidelity’s 11 sector ETFs, and all are available commission-free on Fidelity.com.
“We want customers to receive the best value possible, whether that means offering a Fidelity solution or one from a third-party leader,” said Ram Subramaniam, president of Fidelity Brokerage Services. “At Fidelity, investors can now build an even lower-cost, diversified equity and bond portfolio in the industry using both index mutual funds and ETFs.”
Should Index Investors Choose Mutual Funds and ETFs Solely on Price?
While expense ratios and commissions are an important criteria for researching the best index investments for an investor’s portfolio, Fidelity reminds investors to also research who is managing the portfolio; what the fund’s liquidity is (so they can easily buy and sell it); tax considerations for earned dividends and interest; the fund’s holdings to ascertain exposure; as well as what the past performance has been over multiple timeframes. To help investors evaluate mutual funds and ETFs, Fidelity offers industry-leading research and education online. And, Fidelity offers more than 3,600 no-transaction-free mutual funds (more than 11,600 in total), and more than 1,500 ETPs (exchange traded products) online.
Fidelity also encourages investors who are evaluating what brokerage firm to use to ask the following questions across six categories that encompass a total value evaluation including the right mix of price, service, tools and investments.
1. What are the commissions and fees for stock, mutual fund, options,
bond and ETF trades?
2. Is the firm in good financial standing and is it a trusted brand?
3. What criteria are used to route my stock trades, and what level of price improvement does it provide?
4. Does the firm offer the selection of investments I need to achieve my investing and cash management goals?
5. Does it have robust education and research offerings that fit my needs and experience level to help me be a better investor?
6. What options do I have for customer service (e.g. phone, chat, email, in person) and is it available when I need it?
About Fidelity Investments
Fidelity’s goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $5.6 trillion, including managed assets of $2.1 trillion as of Aug. 31, 2016, we focus on meeting the unique needs of a diverse set of customers: helping more than 25 million people invest their own life savings, nearly 20,000 businesses manage employee benefit programs, as well as providing nearly 10,000 advisory firms with investment and technology solutions to invest their own clients’ money. Privately held for nearly 70 years, Fidelity employs 45,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.
Before investing in any mutual fund or exchange-traded product, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular, or, if available, a summary prospectus containing this information. Read it carefully.
ETFs are subject to market fluctuations of their underlying investments and may trade at a discount to NAV. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
Free commission offer applies to online purchases of 70 iShares ETFs in a Fidelity account with a minimum opening balance of $2,500. The sale of ETFs is subject to an activity assessment fee (of between $0.01 and $0.03 per $1,000 of principal) and, subject to a short-term trading fee by Fidelity if held less than 30 days.
When comparing funds, please consider all important factors, including information pertaining to fund fees, fund features, and fund objectives. While funds may track an index, the indexes and strategies employed in seeking to achieve an investment goal may be different. Each fund's investment object and strategy and index tracked to achieve investment goals may differ. For new investors, funding investment minimums may be different.
For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive, long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Additional information about the sources, amounts, and terms of compensation is described in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.
Fidelity Investments and Fidelity are registered service marks of FMR LLC.
BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.
Third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or its affiliated companies.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc.,
500 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,
200 Seaport Boulevard, Boston, MA 02110
© 2016 FMR LLC. All rights reserved.
1 Premium share class. $10,000 minimum investment. (FUSVX; FSTVX)