Investors Will Win From Fund Fee Shakeup

Fidelity has widened the gap between what active funds charge and what they ought to charge – and this will benefit investors in the long run

Jeffrey Ptak 14 August, 2018 | 12:55PM

Are Zero Fee Funds the Future?

Fidelity’s zero-fee index funds don’t come as a complete shock, as pundits have been speculating for some time that indexing would one day become a throw-in.

The cost of the cheapest passive funds and ETFs was already hovering just above zero before Fidelity’s move, after all. But it’s still startling to see fund investing cross this particular Rubicon. Indeed, investment products like funds have tended to be viewed not as a means to an end but as a destination themselves. If this doesn’t shatter that illusion, it certainly cracks it.

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Jeffrey Ptak  Head of Manager Research

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