Fidelity to launch no-fee index funds

By MarketsFOXBusiness

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Fidelity, one of the largest index mutual fund providers, announced on Wednesday that it will introduce two no-fee funds, giving more investors access to both domestic and global markets.

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The funds are called the Fidelity Zero Total Market Index Fund (FZROX) and the Fidelity Zero International Index Fund (FZILX). They are the industry’s “first self-indexed mutual funds with a zero expense ratio” and will be directly available to individual investors.

Expense ratio fees are typically paid by investors to cover the costs of maintaining a fund.

The move comes as asset managers have been pressured to lower costs.

Investors will pay a zero percent fee regardless of how much they invest in the funds, while gaining exposure to nearly the entire global stock market, the Boston-based mutual fund said. There is no investment minimum, and no domestic money movement fees for investors.

Additionally, Fidelity will offer zero investment minimums on mutual funds and 529 college savings plans, and it will reduce pricing on existing mutual funds.

Investors will have access to the two new funds beginning Friday. The other changes are effective as of Wednesday.