The Fidelity funds still don’t offer some of the characteristics inherent in ETFs, namely the ability to be traded intraday, transparency and “in-kind” redemptions. (More reasons ETFs are better than Mutual Funds).
Fidelity does offer one ETF: Fidelity NASDAQ Composite Index Tracking (ONEQ), but the provider has said it has no plans to expand into ETFs beyond that. And why should they? Two-thirds of its revenue comes from 401(k)s. Now that money is coming back into those retirement plans, Fidelity doesn’t want to cannibalize their business model. (Why Fidelity won’t play the ETF game).
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Kevin Grewal contributed to this article.