In the latest in a series of changes to
In past months, the online broker has sought shareholder approval to merge two of its proprietary index funds as well as liquidate two others. Currently, E*Trades Bond Index Fund tracks the Lehman Brothers Corporate/Government Bond Index.
Because the fund would become actively managed, the board has recommended that the advisory fee be increased from 0.10% of the Funds daily net assets to 0.25%. E*Trade is also proposing to raise the minimum initial investment to $2,500 from $1,000 as well as raise the minimum IRA contribution from $250 to $1000.
Further details about the proposed changes will be described in a preliminary proxy statement, which is expected to be filed tomorrow with the SEC. Shareholders will vote on the proposal at a November 2 meeting and, if approved, the conversion to active management is expected by the end of the year, according to the filing.
Representatives at E*Trade were unavailable for comment.
