Fidelity announced this week that they are cutting fees on their Spartan index funds to .07% for investors with more than $100,000 in the portfolio. This was a two pronged competitive move by the Boston fund giant. First, they have looked to undercut Vanguard, the keeper of the largest index fund in the world, the Vanguard S&P 500 Fund. In addition, it appears the growing number of assets flowing to exchange traded funds might be becoming a concern.
Fidelity has yet to throw its hat in the ETF ring. Although some may argue it could bastardize some of its current fund business, others would argue they don’t have a choice. ETFs aren’t going away.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.