Fidelity announced zero expense ratio Index Funds
Aug 3, 2018
7 Comments
Can it get any better? Any drawbacks with these funds?
https://www.cnbc.com/2018/08/01/fidelity-one-ups-vanguard-first-company-to-offer-no-fee-index-fund.html
Fidelity one-ups Vanguard, iShares as first fund company to offer a no-fee index fund
comments
I also understand that some amount of equities lending exists for these funds so they can make some money on the side. Maybe those won’t be passed on to the fund holders in this case.
I plan to look into it more but I’m already in funds with fees from 0.01%-0.07% so it may be negligible. They also are following their own index so it’s unclear how that may deviate from a more established index. They could decide not to include certain equities because of a more expensive cost to invest. That being said, I like fidelity and hope this works out for them and keeps competition up for the market.