Fidelity Expands Menu of Commission Free ETFs
March 13, 2013
The ability to buy and sell ETFs without paying a brokerage commission is one of the biggest unfolding trends in the ETF marketplace.
This time around, Fidelity Brokerage Services has expanded its lineup of commission free ETFs from 30 iShares ETFs to 65.
Fidelity’s commission free ETF menu now includes 10 iShares Core ETFs, like the popular iShares Core S&P 500 (NYSEARCA:IVV) and the iShares Core Total U.S. Bond Market ETF (NYSEARCA:AGG). IVV, one of the largest equity ETFs, has $39.9 billion in assets and charges annual expenses of just 0.07%. AGG has $14.8 billion and charges 0.08%.
Also included in the mix are iShares ETFs covering international stocks, fixed income and specialized equity sectors.
In the commodities group, the four equity ETFs qualifying for online commission free trades are the iShares MSCI Global Gold Miners (NYSEARCA:RING), iShares MSCI Global Metals & Mining Producers (NYSEARCA:PICK), and the iShares MSCI Global Silver Miners (SLVP) and the iShares MSCI Global Agriculture Producers (VEGI).
Other popular ETFs on Fidelity’s commission free menu are the iShares Dow Jones Select Dividend Index (NYSEARCA:DVY) and the iShares S&P U.S. Preferred Stock Index (NYSEARCA:PFF).
While Fidelity's commission free ETF offer is compelling, it has a twist. Beginning on July 31, 2013 a short-term trading fee of $7.95 will be charged for any sales of iShares ETFs that occur within 30 days of the original purchase date.
Competing commission free ETF platforms like Charles Schwab, TD Ameritrade, and Vanguard use multiple ETF families and offer a larger menu of eligible ETFs for commission free trades.
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