Another skirmish in the fight for low fees has Fidelity Investments reducing total expenses on 27 of its equity and bond index mutual funds and exchange traded funds (ETFs) effective July 1, 2016. The average expenses across Fidelity’s index fund line-up will decrease to 10.2 basis points (0.102 percent), down from 11.6 basis points today, according to the company.
The Boston-based mutual fund behemoth claims the expense reductions “are expected to save current shareholders approximately $20 million annually.”
“We are taking already one of the lowest cost index fund offerings in the industry and making it even more compelling,” Colby Penzone, senior vice president for Fidelity’s Investment Product Group, said in a statement.
Fidelity is currently the second-largest index mutual fund manager in the industry with more than $216 billion in assets under management.