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

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

Rating:TD Ameritrade Makes a Strategic Deal With DFA Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, April 27, 2017

TD Ameritrade Makes a Strategic Deal With DFA

News summary by MFWire's editors

Thanks to a new "strategic relationship", one RIA custodian is making it a whole lot cheaper for its advisors to use Dimensional Fund Advisors' (DFA's [profile]) mutual funds. Perhaps other such custodial deals will follow suit?

Tim Hockey
TD Ameritrade
President & CEO
Last week on TD Ameritrade's Q2 2017 earnings call with analysts, transcribed by Seeking Alpha, TD CEO Tim Hockey confirmed that the brokerage and custodian "recently joined forces with Dimensional Funds ... in a strategic relationship." Hockey calls DFA "the largest mutual fund family" on the TD platform.

Hockey was light on details, only revealing that the DFA relationship "makes DFA's funds available to advisors for a reduced rate and introduces new educational and practice management resources." Yet two months ago AdvisorHub broke the news that TD was cutting the transaction fee on DFA funds to $9.99. That, RIABiz now notes, is a drop of more than two-thirds. By comparison, AdvisorHub notes, rival RIA custodian Schwab charges a $25 transaction fee on DFA funds while another rival, Fidelity, charges $50 to buy and $30 to sell. DFA-using RIAs, RIABiz notes, are reacting positively to the change, and some of the pub's sources wonder if Fido and Schwab will quickly follow suit.

The traditional tradeoff in the RIA channel has been higher asset-based platform fees on NTF (no-transaction-fee) platforms vs transaction fees but lower platform fees on institutional platforms. DFA, which has a big and loyal advisor base, has traditionally fallen in the latter camp, eschewing the higher platform fees required for inclusion in NTF platforms, and that has meant that advisors' clients (or advisors themselves) have had to foot the platform bill by paying transaction fees on DFA funds.

The new TD-DFA deal, like rival custodian Fidelity's new iNTF platform (with low asset-based platform fees and no transaction fees), seems to upend that traditional NTF-vs.-institutional model for the RIA custodians. Yet unlike Fidelity's new platform, the TD-DFA deal is a one-off that doesn't involve any other fund companies. But perhaps others will follow suit.

"Our scale puts us in a great position to get creative and try new things," Hockey said on the call last week. "We're evaluating other opportunities as well and we'll share more once details have been finalized." 

Edited by: Neil Anderson, Managing Editor

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

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
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:
Add to My Yahoo!
follow us in feedly

  1. 2024 ICI Leadership Summit, May 21-23
  2. MFDF webinar - Mutual Fund Director Compensation: the MPI Annual Survey (2024), May 21
  3. Schwab Institutional Investor Day, May 22
  4. IMEA webinar - Opportunities in the Evolving Wealth Management Market, May 22
  5. Raymond James 2024 Analyst & Investor Day, May 23
  6. WE SoCal - How to Lead With Impact: Fireside Chat With Lorraine Le, May 23
  7. MFDF Conference of Fund Leaders Forum, June 5
  8. MFDF in-person outreach: Continuing Regulatory Impacts on Fund Boards, June 11
  9. MFDF webinar - Digital Assets in the Fund Space (Part 1 of 2), June 12
  10. 2024 MMI Leadership Pathway Seminar, Jun 12-14
  11. 2024 Nicsa Fearless Leadership Symposium, June 12
  12. Expect Miracles East Coast Classic 2024, June 13
  13. MFDF webinar - Lessons Learned from the Regional Bank Volatility and the Impact on Registered Funds, June 18
  14. MFDF Director Discussion Series - Open Forum (Philadelphia), June 20
  15. New York YPEM Cornhole Classic, June 25
  16. Morningstar Investment Conference Conference 2024, Jun 26-27
  17. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 16
  18. MFDF Director Discussion Series - Open Forum via Zoom, July 17
  19. MFDF Director Discussion Series - Open Forum (New York), July 23
  20. 2024 MMI Annual Conference, Oct 15-17
  21. 5th Annual ETFGI Global ETFs Insight Summit, October 29
  22. MFDF webinar - Digital Assets in the Fund Space (part 2 of 2), November 7
  23. MFDF 2025 Directors' Institute, January 27 - 29, 2025
  24. MFDF 2025 Fund Governance & Regulatory Insights Conference, March 6 - 7, 2025

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use