Fidelity Makes a Bold Move with ETF Partnership
Although a late bloomer in the ETF scene, Fidelity is partnering with BlackRock in an effort to grab its share of the ETF space without reinventing the wheel. The firm will give investors free trades on 25 of iShares broad-based index funds.
The deal was a direct response to Charles Schwab’s decision to give its own customers free access to its new line of ETFs. Charles Schwab offers free trades on a total of 8 funds, while the newest deal between Fidelity and BlackRock allows for commission-free trades on 25 funds, including four international funds and five fixed-income products, The Street reports.
Charles Schwab’s mutual funds are in direct competition with Fidelity, which is currently the third largest mutual fund manager by assets. The details of the agreement have largely been kept secret, though it appears Fidelity is interested in utilizing the commission-free ETFs as a marketing strategy after recently reducing the commission on all trades to $7.95.
The race to dominate country specific funds is in full swing. iShares recently filed with the SEC to create another six country-specific ETFs.
Tapping into the current investment trends, Global X thinks there is room for a few more precious metal funds. The company has filed with the SEC to create four new funds, which will track companies involved in silver, gold, platinum and copper mining.
In strengthening its market niche, PIMCO has launched the third addition to its family of actively-managed bond funds. The fund will select top municipal bonds to cater to investors seeking tax-free returns.
Continuing to play on the popularity of regional investments, iShares is expanding its line of MSCI-tracking products with the addition of four new country-specific offerings. The funds target popular investment destinations, including Poland, China, Indonesia, and New Zealand.
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