The ETF Price War Goes to Another Level
February 18th, 2011 at 3:00pm by Tom Lydon
Fidelity has just opened up a new can of worms in the exchange traded fund (ETF) price war.
Chris Flood for The Financial Times reports that the provider now offers customers free trading on a total of 30 iShares ETFs. It’s taken by some to mean that iShares is playing a role in the price wars, even if it’s just behind the scenes.
Hannah Glover for Ignites reports that the provider is also taking the price war to the retirement mat, as the 401(k) platform will start seeing dissolving fees. [Schwab to Launch an All-ETF 401 (k) Plan.]
The new share classes targeting retirement plan sponsors should roll out soon. This is going to get good for investors – they can’t lose either way. In the end, the plan participants (employees) win as the fees are lower, regardless if they’re index funds or ETFs. [iShares Lowers Fees on Some ETFs.]
Tisha Guerrero contributed to this article.
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