BOSTON--(BUSINESS WIRE)--Fidelity Investments®, one of the industry’s largest, most experienced providers of low-cost active and index investment products, today announced that effective July 1, 2016 it will reduce total expenses1 on 27 of its equity and bond index mutual funds and exchange traded funds (ETFs). The average expenses across Fidelity’s index fund line-up will decrease to 10.2 basis points (0.102%), down from 11.6 basis points today. 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,” said Colby Penzone, senior vice president for Fidelity’s Investment Product Group.
“While cost matters, investors should also consider the overall experience and value a financial services firm can deliver when deciding where to invest,” continued Penzone. “When you combine low expenses with access to our award-winning online brokerage platform, mobile applications, more than 190 Investor Centers in the U.S., and live 24/7 customer service via phone, we believe Fidelity provides the best customer experience and value in the industry.”
Fidelity has been managing index mutual funds for more than 25 years and is currently the second-largest index mutual fund manager in the industry with more than $216 billion in assets under management.1 Fidelity offers 19 equity, fixed income and hybrid index mutual funds, and manages more than $3.5 billion in assets across 12 index ETFs.2 In addition to having some of the lowest total net expenses in the industry, Fidelity’s index funds are also offered to customers on the company’s platform with no transaction fees or sales loads.
Significant Reduction in Index Fund Expenses
Effective July 1, 2016, Fidelity will reduce total expenses across 27 of its index funds, which includes 16 index mutual funds and 11 index ETFs.
| Mutual Fund/Class |
Previous Total |
New Total |
Savings |
||||||
| Fidelity 500 Index Fund | |||||||||
|
9.5 | 9.0 | 0.5 | ||||||
|
5.0 | 4.5 | 0.5 | ||||||
|
4.0 | 3.5 | 0.5 | ||||||
|
2.0 | 1.5 | 0.5 | ||||||
| Fidelity Total Market Index Fund | |||||||||
|
10.0 | 9.0 | 1.0 | ||||||
|
5.0 | 4.5 | 0.5 | ||||||
|
4.0 | 3.5 | 0.5 | ||||||
|
3.5 | 1.5 | 2.0 | ||||||
| Fidelity Extended Market Index Fund | |||||||||
|
10.0 | 10.0 | - | ||||||
|
7.0 | 7.0 | - | ||||||
|
6.0 | 4.5 | 1.5 | ||||||
| Fidelity Large Cap Growth Index Fund | |||||||||
|
22.0 | 21.0 | 1.0 | ||||||
|
8.0 | 7.0 | 1.0 | ||||||
|
7.0 | 6.0 | 1.0 | ||||||
|
6.0 | 5.0 | 1.0 | ||||||
| Fidelity Large Cap Value Index Fund | |||||||||
|
22.0 | 21.0 | 1.0 | ||||||
|
8.0 | 7.0 | 1.0 | ||||||
|
7.0 | 6.0 | 1.0 | ||||||
|
6.0 | 5.0 | 1.0 | ||||||
| Fidelity Mid Cap Index Fund | |||||||||
|
22.0 | 19.0 | 3.0 | ||||||
|
8.0 | 7.0 | 1.0 | ||||||
|
6.0 | 6.0 | - | ||||||
|
4.0 | 4.0 | - | ||||||
| Fidelity Small Cap Index Fund | |||||||||
|
23.0 | 19.0 | 4.0 | ||||||
|
9.0 | 7.0 | 2.0 | ||||||
|
7.0 | 6.0 | 1.0 | ||||||
|
5.0 | 4.0 | 1.0 | ||||||
| Mutual Fund/Class |
Previous Total |
New Total |
Savings |
||||||
| Fidelity International Index Fund | |||||||||
|
20.0 | 19.0 | 1.0 | ||||||
|
12.0 | 8.0 | 4.0 | ||||||
|
7.0 | 6.0 | 1.0 | ||||||
|
6.0 | 5.0 | 1.0 | ||||||
| Fidelity Global ex U.S. Index Fund | |||||||||
|
19.0 | 18.0 | 1.0 | ||||||
|
12.0 | 11.0 | 1.0 | ||||||
|
10.0 | 9.0 | 1.0 | ||||||
|
7.0 | 6.0 | 1.0 | ||||||
| Fidelity Total International Index Fund | |||||||||
|
19.0 | 18.0 | 1.0 | ||||||
|
12.0 | 11.0 | 1.0 | ||||||
|
10.0 | 9.0 | 1.0 | ||||||
|
7.0 | 6.0 | 1.0 | ||||||
| Fidelity Emerging Markets Index Fund | |||||||||
|
31.0 | 30.0 | 1.0 | ||||||
|
20.0 | 14.0 | 6.0 | ||||||
|
13.0 | 11.0 | 2.0 | ||||||
|
10.0 | 9.0 | 1.0 | ||||||
| Fidelity U.S. Bond Index Fund | |||||||||
|
20.0 | 15.0 | 5.0 | ||||||
|
7.0 | 5.0 | 2.0 | ||||||
|
6.0 | 4.0 | 2.0 | ||||||
|
5.0 | 3.0 | 2.0 | ||||||
| Fidelity Short-Term Treasury Bond Index Fund | |||||||||
|
20.0 | 19.0 | 1.0 | ||||||
|
10.0 | 9.0 | 1.0 | ||||||
| Fidelity Intermediate Treasury Bond Index Fund | |||||||||
|
20.0 | 19.0 | 1.0 | ||||||
|
10.0 | 9.0 | 1.0 | ||||||
| Fidelity Long-Term Treasury Bond Index Fund | |||||||||
|
20.0 | 19.0 | 1.0 | ||||||
|
10.0 | 9.0 | 1.0 | ||||||
| Fidelity Inflation-Protected Bond Index Fund | |||||||||
|
20.0 | 19.0 | 1.0 | ||||||
|
10.0 | 9.0 | 1.0 | ||||||
|
7.0 | 6.0 | 1.0 | ||||||
|
5.0 | 5.0 | - | ||||||
| ETF |
Previous Total |
New Total |
Savings |
||||||
|
Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
|
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Consumer Staples Index ETF (FSTA) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Energy Index ETF (FENY) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Financials Index ETF (FNCL) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Health Care Index ETF (FHLC) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Industrials Index ETF (FIDU) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Information Technology Index ETF (FTEC) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Materials Index ETF (FMAT) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Telecommunications Index ETF (FCOM) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Utilities Index ETF (FUTY) |
12.0 | 8.4 | 3.6 | ||||||
|
Fidelity MSCI Real Estate Index ETF (FREL) |
12.0 | 8.4 | 3.6 | ||||||
Fidelity’s expense reductions follow an announcement earlier this month for a series of enhancements to its line-up of index mutual funds, which included launching three new equity funds, replacing the Spartan name with Fidelity, and expanding availability of its institutional share classes to investors on and off the Fidelity platform. The investment minimums for each of Fidelity’s four index mutual fund share classes are:
| Investor | Premium | Institutional | Institutional Premium | |||||||||
|
Employer |
No minimum | No minimum |
$5 million |
$100 million*
|
||||||||
|
Fee-based
|
No minimum | No minimum |
$5 million (refers to wrap program provider’s investment in fund) |
$100 million*
|
||||||||
| Fund of funds | No minimum | No minimum |
$5 million (refers to top-level fund’s investment in fund) |
$100 million*
|
||||||||
|
Fidelity-managed |
No minimum | No minimum | No minimum | No minimum | ||||||||
| Other accounts | $2,500 | $10,000 | $5 million | $100 million* |
*$200 million for Fidelity 500 Index Fund.
“Whether index funds, actively managed funds or managed products, Fidelity has proven time and again its commitment to offering our tens of millions of customers -- individual investors, workplace retirement plan sponsors and participants, and financial advisors -- one of the most comprehensive and competitive investment product lines in the industry,” said Penzone.
“As we’ve done for 70 years, we’ll continue to look for opportunities to strengthen our investment products regardless of asset class, style or vehicle. As a diversified financial services provider, we’re focused on helping our customers meet their unique investment needs by providing them access to choice, value and expertise,” concluded Penzone.
Fidelity Announces Major Index Fund Pricing Reductions / Page
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 $5.4 trillion, including managed assets of $2.1 trillion as of May 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 fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, an offering circular, or, if available, a summary prospectus containing this information. Read it carefully.
IMPORTANT FEE INFORMATION: Certain of Fidelity’s stock and bond index mutual funds have max short-term redemption fees of up to 1.5% for eligible shares held less than a maximum of 90 days. Fidelity may deduct a small-balance maintenance fee of $12 from a fund balance with a value of less than $2,000 in shares.
Please note: 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 indices 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.
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Investing involves risk, including risk of loss.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market or economic developments, all of which are magnified in emerging markets. Investing in stock involves risks, including the loss of principal.
ETFs are subject to market fluctuations of their underlying investments and may trade at a discount to NAV.
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
766318.2.0
© 2016 FMR LLC. All rights reserved.
1 Expenses are the total annual fund operating expenses from
the fund’s most recent prospectus.
1 As of May 31, 2016
1
As of May 31, 2016
