By Charles Stein, Annie Massa, and Felice Maran of Bloomberg
Some Fidelity index ETF = 0 fee. Expect retaliation from others.
However, it now becomes more important than ever to consider index tracking error and other sources of revenues for the manager within the ETF (e.g. securities lending). Zero cost is not always zero total ‘costs’. We’ll have more on this as others retaliate...
"Fidelity Investments, having lost billions of dollars in assets to rivals, pulled out some new ammunition to use against them -- dropping fees to zero.
The move is part of an ongoing reckoning at Fidelity. The company, which built an empire on the prowess of its stock pickers, has been moving aggressively to fit into a world increasingly dominated by low-cost index products and exchange-traded funds. But it’s playing catch-up to Vanguard Group and BlackRock Inc."