Fidelity is offering a suite of 25 iShares exchange-traded funds to its online and wireless retail customers commission-free, and Fidelity has also reduced its online U.S. equity trade commissions to $7.95. for all of its customers.
The program is in partnership with iShares parent company BlackRock and includes some of the most popular ETFs on the market: the iShares S&P 500 Index, iShares Russell 2000 Index, iShares Barclays Aggregate Bond, iShares MSCI EAFE Index and iShares MSCI Emerging Markets Index funds.
Fidelity has also upgraded its website to include viewpoints on ETF investing strategies, research and fund evaluation tools.
“Fidelity has partnered with the leading ETF provider in the market to bring investors the best brokerage offering in the industry today,” said Kathleen A. Murphy, president of personal investing at Fidelity. “Simply put, we’re offering the broadest selection of commission-free ETFs from the undisputed ETF leader, and it’s only available through Fidelity.”
Fidelity said many of its self-directed investors are increasingly turning to ETFs because of their intraday trading capabilities, low costs, tax efficiencies and broad market access.
Although speculation has increased in recent months that Fidelity itself might offer ETFs, this move somewhat dispels that notion, especially because Fidelity is waiving the commissions for at least three years.