Zero. Zilch. Nada.
Fidelity kicked it up a notch (or down)—at least when it comes to index funds. Earlier this week, the investing behemoth announced“a series of industry-changing moves that will give investors unparalleled value, simplicity and choice” are coming, namely a no-fee fund.
The Boston-based company added the new fund options to its lineup on Fidelity.com.
The Zero Expense Ratio Fidelity ZERO Index Funds (FZROX) and Fidelity ZERO International Index Fund (FZILX) are the industry’s first self-indexed mutual funds with a zero expense ratio that are available directly to individual investors.
“This means investors will pay a 0.00 percent fee, regardless of how much they invest in either fund, while gaining exposure to nearly the entire global stock market,” Fidelity explained in its statement.
The company announced several other enhancements, as well, including:
- Zero minimums to open accounts; zero account fees; and zero domestic money movement fees for individual investors. For example, individual investors will not be charged for domestic bank wires, check stop payments, returned checks and low balance maintenance fees. These changes are effective immediately.
- Zero investment minimums on Fidelity mutual funds and 529 college savings plans available to individual investors directly from Fidelity or through a financial advisor. These changes are effective immediately.
- Reduced and simplified pricing on existing Fidelity stock and bond index mutual funds. Investors will have access to the lowest priced share class available, ensuring everyone, regardless of how much they invest, will benefit from the lowest possible fees. The average asset-weighted annual expense across Fidelity’s stock and bond index fund lineup’s will decrease by 35 percent, with funds as low as 0.015 percent.
“With this action, 100 percent of Fidelity’s stock and bond index mutual funds and sector ETFs will have total net expenses lower than all of Vanguard’s comparable funds that are available to individuals, advisors and institutional investors,” the company noted in its statement. “In addition, Fidelity beats Schwab’s prices for nine of 10 comparable index mutual funds (and is tied on the 10th index mutual fund).”
Jessica Claeys is an editor, writer, and graphic designer, who has been creating both print and digital marketing and communications content for 10+ years.
Jessa Claeys is a licensed insurance producer in the state of Colorado and an insurance editor for Bankrate. She currently covers auto, home and life insurance with the goal of helping others secure a healthy financial future. Jessa has over a decade of experience writing, editing and leading teams of content creators. Her work has been published by several insurance, personal finance and investment-focused publications, including BiggerPockets, 401(k) Specialist, BP Wealth and more.