Fidelity’s decision to cut fees may be a response to the ETF’s fee war. For instance, the cheapest index ETF at Schwab comes with a 0.04% expense ratio.
Moreover, Fidelity currently offers one ETF, the Fidelity Nasdaq Composite Index (NasdaqGM: ONEQ), but the company has filed to launch actively managed ETFs. [Fidelity Files to Launch Active ETFs]
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Max Chen contributed to this article.