The Rush is on to Fidelity's Zero Fee Funds

According to Morningstar data, the average expense ratio for funds in 2017 when weighted for the amount the funds have in assets dipped to 0.52%, or a decline of 8% from the 2016 average, reports Ryan Vlastelica for MarketWatch.

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The cheaper fees may be a response to the increased popularity of passive funds, which just try to passively reflect the performance of an underlying index like the S&P 500. The passive nature does not require too much hand holding, compared to an actively managed fund where components are selected at the discretion of a manager or trade team.

“While Fidelity, which manages $2.5 trillion, is best known for its actively-managed funds, in the past few years it has aggressively gone after rivals in the “passive” index arena, and now has about $400 billion in index mutual funds according to Bloomberg,” reports Zero Hedge.

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