The fund, to be known as Fidelity Nasdaq Composite Tracking Stock, will be an exchange-traded fund and the first ETF to track Nasdaq. Like mutual funds, ETFs are pools of securities. But unlike regular mutual funds, ETFs can be bought and sold throughout the day like stocks, making them especially attractive to aggressive traders and big institutional investors.
Fidelity is a newcomer to the ETF sector, which had $100.8 billion in assets at the end of March and is dominated by other investment firms such as
ETFs usually have the lowest expenses, which makes investors willing to pay a brokers commission, as with stocks, to by an ETF. Fidelity said its Nasdaq ETF will have an expense ratio of 0.30%. Out of that fee, it would pay a 0.06% license fee to Nasdaq.
