Fidelity Investments®, a leading online brokerage firm and the largest mutual fund company, today announced it will offer its retail customers commission-free online trades for a suite of 25 iShares® Funds from the global leader in Exchange Traded Funds. Separately, the firm also announced it has reduced its online U.S. equity trade commissions to $7.95 for all of its customers regardless of trading level.
The program, established in partnership with BlackRock®, includes the popular iShares S&P 500 Index Fund (IVV), iShares Russell 2000 Index Fund (IWM), iShares Barclays Aggregate Bond Fund (AGG), iShares MSCI EAFE Index Fund (EFA) and iShares MSCI Emerging Markets Index Fund (EEM).
This broad, commission-free offering is for all online buy and sell orders through Fidelity’s online and wireless channels. It provides investors who use Fidelity’s retail brokerage platform, which currently provides services to more than 12 million brokerage accounts, a wide range of ETF choices in all nine domestic equity style categories from large value to small growth, as well as international equity and fixed-income asset classes. Investors can also trade more than 800 ETFs, available from more than 40 providers, for $7.95 a trade on Fidelity.com. There they will also find new Fidelity viewpoints on ETF investing strategies, as well as 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 Investments. “Simply put, we’re offering the broadest selection of commission-free ETFs from the undisputed ETF leader1, and it’s only available through Fidelity.
“When you combine this new initiative with the fact that Fidelity offers the largest funds supermarket in the industry2, sophisticated online investment planning tools and extensive, institutional-grade stock research, you can see our relentless focus on providing every advantage to Fidelity customers so they can be more successful investors in today’s fast-paced and fluid market environment,” Murphy said.
Growing ETF Demand
Many of Fidelity’s self-directed investors recognize that the trading flexibility, low costs, broad market access and potential tax benefits of ETFs can make them an effective vehicle for achieving investment growth and enhancing portfolio diversification.
Recent Fidelity polls of active investors have shown that more than half plan to increase their ETF trading over the next 12 months3 . Since 2005, global ETF assets have grown 145 percent, reaching over $1 trillion4. BlackRock is the No. 1 ETF provider with its iShares product line holding 50 percent market share in the U.S5.
“We’re very excited that Fidelity, a proven leader in the retail brokerage industry, is promoting ETFs and furthering iShares availability to investors,” said Michael Latham, Head of US iShares, BlackRock. “The 25 iShares Funds that Fidelity chose to include in this offering represent leading indices in each asset class and can be used as the foundation for building an investor’s portfolio. Fidelity is strongly committed to investors, and their decision to offer iShares is a great validation of ETFs as a mainstream investment.”
Fidelity will offer 25 iShares ETFs commission-free for a period anticipated to be at least three years.
Diversified iShares ETFs
The following 25 iShares ETFs will be available for trading online, with no commission, on Fidelity.com effective tomorrow:
| Value | Blend | Growth | |||||||
| Large Cap |
iShares S&P 500 Value (IVE)
iShares Russell 1000 Value (IWD) |
iShares S&P 500 (IVV)
iShares Russell 1000 (IWB) iShares Russell 3000 (IWV) |
iShares S&P 500 Growth (IVW)
iShares Russell 1000 Growth (IWF) |
||||||
| Mid Cap | iShares S&P MidCap 400 Value (IJJ) | iShares S&P MidCap 400 (IJH) | iShares S&P MidCap 400 Growth (IJK) | ||||||
| Small Cap |
iShares S&P SmallCap 600 Value (IJS)
iShares Russell 2000 Value (IWN) |
iShares S&P SmallCap 600 (IJR)
iShares Russell 2000 (IWM) |
iShares S&P SmallCap 600 Growth (IJT)
iShares Russell 2000 Growth (IWO) |
||||||
| International |
iShares MSCI EAFE (EFA) iShares MSCI EAFE Small Cap (SCZ) iShares MSCI Emerging Markets (EEM) iShares MSCI ACWI (ACWI) |
||||||||
| Bond |
iShares Barclays TIPS (TIP) iShares Barclays Aggregate (AGG) iShares iBoxx $ Investment Grade Corporate (LQD) iShares JP Morgan USD Emerging Markets (EMB) iShares S&P National AMT-Free Municipal (MUB) |
||||||||
A Series of Brokerage Innovations
This free ETF trade offer represents the latest in a series of product and service innovations that Fidelity has made available to customers over the past few months. In October, the firm introduced expanded international trading capabilities in 12 countries and eight currencies for eligible customers; in November, a new online Stock Research Center was launched to help investors identify trading and investment ideas; and in August, the firm rolled out a new fixed-income guidance program.
Fidelity, which offers more than 10,000 funds from over 460 fund families, also has a long history of price innovations including low online commissions, free online trades for U.S. Treasuries, and more than 1,500 no-load, no-transaction-fee funds6.
Learn More About ETFs
Investors interested in learning more about ETFs can visit Fidelity’s new ETF Web page at www.fidelity.com/investETFs. There they can find the latest research, breaking news, along with helpful tools such as Fidelity’s ETF Evaluator and ETF Portfolio Builder, both of which enable investors to conveniently customize, analyze and trade a portfolio of ETFs. Investors also can find a series of new Fidelity Viewpoints, which outline the basics of ETF investing, such as benefits and risks, how to build a portfolio, and common investment approaches where ETFs can be utilized.
About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of over $3.2 trillion, including managed assets of $1.5 trillion as of Dec. 31, 2009. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to over 20 million individuals and institutions as well as through 5,000 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket, a leading online brokerage firm and one of the largest providers of custody and clearing services to financial professionals. For more information about Fidelity Investments, visit www.fidelity.com.
Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus containing this information. Read it carefully.
Fidelity’s $7.95 flat commission applies to online trades in all U.S. equity securities for Fidelity Brokerage Services LLC retail clients. It does not apply to foreign stock transactions or restricted securities transactions. Additional fees may be charged on orders that require special handling. A minimum deposit of $2,500 is required to open most Fidelity brokerage accounts. Waivers may apply. Commission schedules may vary for employee stock plan services transactions. See Fidelity.com for details.
Exchange-traded funds (ETFs) are subject to risks similar to those of stocks and will fluctuate in response to the activities of individual companies and general market and economic conditions domestically and abroad. When redeemed, you may gain or lose money.
Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with a marketing program that includes promotion of iShares ETFs and certain commission waivers. Additional information about the sources, amounts, and terms of compensation is described in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.
The Fidelity ETF Portfolio Builder tool has been provided to help investors evaluate ETFs based on their own particular needs and circumstances. Any information obtained from its use should not be considered investment advice or a recommendation of any particular security or portfolio.
For no-load and no transaction fee funds, other fees and expenses, including those which apply to a continued investment in the fund, are described in the fund's current prospectus. Fidelity Brokerage Services or its brokerage affiliate may receive remuneration for providing certain record keeping or shareholder services to these fund families.
© FMR LLC, all rights reserved.
Fidelity Investments is a registered service mark of FMR LLC.
The third party trademarks appearing herein are the property of their respective owners.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917
543155
1 BlackRock’s iShares ETFs held 50.1% of the assets in all U.S. ETFs at the end of 2009, source Morningstar, Inc.
2 Data sources: Fidelity and FundsNetwork assets and net sales: Fidelity internal financial data as of 12/31/2009. Schwab assets and net sales: Schwab's Fourth Quarter and Full Year 2009 Financial Report, released January 19, 2010. Industry net sales: Simfund.
3 The Fidelity 2009 Traders’ Summit Active Trader Polls were conducted in Boston on June 9, 2009, in Seattle on September 29, 2009 and in Philadelphia on October 23, 2009 on hand-held Audience Response System devices by JStryker, Inc. A total of 902 Traders’ Summits attendees responded to the question “Do you expect to trade Exchange Traded Funds [more, same, less] in the next year?” and 482 answered “More.” Fidelity invited to the Traders’ Summits customers and other guests, many of whom are active traders, making 120 or more trades per year.
4 BlackRock, Inc.’s “ETF Landscape Year End 2009 Preview Report” January 13, 2010.
5 BlackRock’s iShares ETFs held 50.1% of the assets in all U.S. ETFs at the end of 2009, source: Morningstar, Inc.
6 Other fees and expenses applicable to continued investment are described in the fund’s current prospectus.
Fidelity Investments
Corporate Communications, 617-563-5800
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