Fidelity introduces $100 servicing fee for select ETFs

Fidelity introduces 0 servicing fee for select ETFs

Investors poured capital into U.S. stock ETFs last month, according to Citi Research. -Spencer Platt/Getty Images

Fidelity Investments plans to charge investors a $100 service fee when they place buy orders in exchange-traded funds issued by nine companies.

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The new service fees – which could be imposed on ETFs issued by Simplify Asset Management, AXS Investments, Day Hagan, Sterling Capital, Cambiar, Regents Park, Rayliant, Adaptive and Running Oak – are expected to take effect on June 3, according to a report . Bloomberg News Report. A Fidelity spokesperson confirmed the report was accurate.

The new fees will apply to ETFs issued by a small group of asset managers that do not participate in a maintenance agreement with Fidelity, according to Bloomberg.

“We remain committed to providing customers with the choice of an open architecture investment platform,” the Fidelity spokesperson told MarketWatch in an email Monday. “Support fees help maintain the technology and service operations necessary to ensure a secure and positive investor experience. »

Fidelity may periodically update its list of “supplement-eligible ETFs,” which could change again before June 3, according to the Bloomberg report.

At the end of March, U.S.-listed ETFs totaled $8.9 trillion in assets under management, according to a Citigroup research note released Monday. Investors poured more capital into domestic stock ETFs last month as the S&P 500 SPX index surpassed 5,200 points, Citi Research said.

ETFs managed by State Street, Vanguard and BlackRock attracted the largest inflows last month, including the SPDR S&P 500 ETF Trust SPY, the Vanguard S&P 500 ETF VOO and the iShares S&P 500 Growth ETFIVW, according to the note from Citi.

Read: Q1 ETF Flows Reflect Investors’ Hopes for a ‘Soft Landing’

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