The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fidelity Inks an ETF Deal Not Rated 5.0 Email Routing List Email & Route  Print Print
Tuesday, February 02, 2010

Fidelity Inks an ETF Deal

Reported by InvestmentWires Staff, 

Starting tomorrow, Fidelity will offer 25 iShares ETFs commission-free (see the complete list below). Fidelity's move comes three months after Schwab announced it was making proprietary ETFs available sans commission.

"We believe this is the best deal on ETFs in the industry," Fidelity spokesman Adam Banker told The MFWire. "We chose to partner with the undisputed ETF leader."

Sought for comment on Fidelity's move, Schwab spokesperson David Weiskopf told The MFWire: "As the old expression goes, imitation is the greatest form of flattery."

"We appreciate the decision Fidelity has made to follow Schwab's lead in the ETF space and trading commissions," Weiskopf added.

Fidelity also announced on Tuesday that it will lower U.S. online equity commissions to $7.95 for all customers effective February 3.

The Boston Behemoth has one proprietary ETF, the Fidelity Composite Index Tracking Index, and that will also be available commission-free. Schwab, for its part, entered the ETF business last November and now has eight proprietary ETFs.

Fidelity offers 200 iShares ETFs, of which 25 --including iShares S&P 500 Index Fund and iShares Russell 2000 Index Fund -- will be commission-free. The Boston Behemoth also offers 600 ETFs from more than 40 other providers, which investors can trade for $7.95 on Fidelity.com.

Fidelity's deal with BlackRock, which purchased iShares and the rest of Barclays Global Investors last year, will be in effect for at least three years.

The 25 iShares ETFs "enable broad diversification and may be appropriate for many portfolios," Banker said. Those ETFs collectively hold more than $200 billion of assets.

Down the road, does Fidelity plan to increase the number of commission-free iShares and make similar arrangements with other ETF providers? "We will monitor the success of the program before making any additional decision," Banker said.

In a separate interview, Mike Latham, head of the U.S. iShares business, said that at present, less than 10 percent of iShares assets come from the online brokerage channel.

"This is a great endorsement for iShares," Latham said of the Fidelity deal.

Asked how the deal came about, Latham said: "It started with Fidelity's recognition that ETFs are continuing to grow. A few months ago, they approached us to discuss strategic opportunities for us to work together."

The 25 commission-free iShares ETFs are:

  • iShares S&P 500 Value (IVE)
  • iShares Russell 1000 Value (IWD)
  • iShares S&P MidCap 400 Value (IJJ)
  • iShares S&P SmallCap 600 Value (IJS)
  • iShares Russell 2000 Value (IWN)
  • iShares S&P 500 (IVV)
  • iShares Russell 1000 (IWB)
  • iShares Russell 3000 (IWV)
  • iShares S&P MidCap 400 (IJH)
  • iShares S&P SmallCap 600 (IJR)
  • iShares Russell 2000 (IWM)
  • iShares S&P 500 Growth (IVW)
  • iShares Russell 1000 Growth (IWF)
  • iShares S&P MidCap 400 Growth (IJK)
  • iShares S&P SmallCap 600 Growth (IJT)
  • iShares Russell 2000 Growth (IWO)
  • iShares MSCI EAFE (EFA)
  • iShares MSCI EAFE Small Cap (SCZ)
  • iShares MSCI Emerging Markets (EEM)
  • iShares MSCI ACWI (ACWI)
  • iShares Barclays TIPS (TIP)
  • iShares Barclays Aggregate (AGG)
  • iShares iBoxx $ Investment Grade Corporate (LQD)
  • iShares JP Morgan USD Emerging Markets (EMB)
  • iShares S&P National AMT-Free Municipal (MUB) 

    Stay ahead of the news ... Sign up for our email alerts now

  • 5.0
     Do You Recommend This Story?

    GO TO: MFWire
    Return to Top
     News Archives
    2021: Q2Q1
    2020: Q4Q3Q2Q1
    2019: Q4Q3Q2Q1
    2018: Q4Q3Q2Q1
    2017: Q4Q3Q2Q1
    2016: Q4Q3Q2Q1
    2015: Q4Q3Q2Q1
    2014: Q4Q3Q2Q1
    2013: Q4Q3Q2Q1
    2012: Q4Q3Q2Q1
    2011: Q4Q3Q2Q1
    2010: Q4Q3Q2Q1
    2009: Q4Q3Q2Q1
    2008: Q4Q3Q2Q1
    2007: Q4Q3Q2Q1
    2006: Q4Q3Q2Q1
    2005: Q4Q3Q2Q1
    2004: Q4Q3Q2Q1
    2003: Q4Q3Q2Q1
    2002: Q4Q3Q2Q1
     Subscribe via RSS:
    Raw XML
    Add to My Yahoo!
    follow us in feedly

    1. MFDF Director Discussion Series - Open Forum via Zoom (Midwest), March 10
    2. FinReg Outlook 2021, March 10
    3. Irish Funds North American Digital Seminar, March 11
    4. MFDF webinar - Municipal and Taxable Fixed Income — A Multi-Speed Recovery, March 12
    5. 2021 Virtual Mutual Funds and Investment Management Conference, Mar 15-19
    6. Women for Impact - A Call to Action, March 16
    7. SEC & DOL Standard of Conduct Rulemakings — Present & Future Considerations, March 23
    8. Expect Miracles Foundation's Virtual Mystery Game Night, March 24
    9. MFDF Director Discussion Series - Open Forum via Zoom, March 24
    10. ETFGI Global ETFs Insights Summit - ESG & Active ETF Trends, Mar 24-25
    11. MFDF webinar - Asset Management M&A for Fund Directors — Recent Trends and Governance Issues, March 31
    12. MFDF Director Discussion Series - Open Forum via Zoom, April 7
    13. MFDF In Focus: Board Oversight of Sub-advisers, April 15
    14. ETF.com Awards 2020, April 20
    15. The 31st Sub-Advised Funds Forum, Apr 20-21
    16. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
    17. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
    18. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
    19. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
    20. ICI 2021 General Membership Meeting - Day 1, May 6
    21. ICI 2021 General Membership Meeting - Day 2, May 13
    22. 2021 FINRA Annual Conference, May 18-20
    23. MFDF Director Discussion Series - Open Forum via Zoom, May 19
    24. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
    25. Irish Funds Online Annual Global Funds Conference 2021, May 19-20
    26. MFDF webinar - Fund Director Compensation: MPI Annual Survey (2021), May 20

    ©All rights reserved to InvestmentWires, Inc. 1997-2021
    14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
    Privacy Policy :: Terms of Use