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

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

Rating:Fidelity Gives Another Tool to MF Replicators Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, January 31, 2020

Fidelity Gives Another Tool to MF Replicators

Reported by Neil Anderson, Managing Editor

A retail investing giant has launched another retail investing upgrade that may be unwelcome news for worried fundsters from active stock fund firms.

Scott Steven Ignall
Fidelity Investments
Senior Vice President, Head of Retail Brokerage
On Wednesday, Scott Ignall, head of the retail brokerage business at Fidelity, revealed that the Boston Behemoth will now offer retail investors fractional trading (as small one thousandth of a share), in real-time, of stocks and ETFs, using Fidelity's mobile app. The new feature will work with Fidelity brokerage, HSA, and IRA accounts, as well as self-directed brokerage accounts in defined contribution retirement plans.

The move comes a few months after Fidelity (and a number of other big brokerages) eliminated trading commissions on stocks, options, and ETFs. Combine that feature with Fidelity's fractional trading and the public disclosures of mutual funds, and you have a recipe for do-it-yourself investors to replicate, at no cost, the portfolios of any stock mutual fund out there. When investors can do that, they might wonder, what does an active equity manager offer, especially one focused on long-term investing (not short-term trading)?

There's lag time, of course, as mutual funds (unlike traditional ETFs) don't disclose holdings every day. And the fractional trading update is only for individual investors, not RIAs (at least not yet).

Fundsters running fixed income funds and liquid alts may not have to worry for a while, though, since their funds' underlying holdings are harder for individual investors to replicate on their own. 

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

 Do You Recommend This Story?

Return to Top
 News Archives
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

©All rights reserved to InvestmentWires, Inc. 1997-2023
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use