Fidelity Investments has opened ten cheapest line of single-industry exchange-traded funds (ETFs), with an aim to compete with market leaders such as Vanguard Group and BlackRock.
Fidelity will fund on industries ranging from energy to telecommunications with an annual expense ratio of 0.12%, cheaper by 2 basis points than Vanguard Group’s lineup of similar ETFs, reported Bloomberg.
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Fidelity, which currently offers only one ETF, has seen assets in stock mutual funds decline by 16% over the last five years, while management and advisory fees declined by around 13%.
To increase its market share, Fidelity has been collaborating with BlackRock for the development and distribution of ETFs. In March 2013, the two firms have expanded to 65, the number of BlackRock funds that Fidelity clients can trade commission-free.
Back in June 2013, Fidelity Investments asset-management unit president, Ron O’Hanley, said in an interview that they are also working together on developing Fidelity-branded asset-allocation products built with BlackRock ETFs.
The Fidelity’s ten new ETFs will also be managed by BlackRock.
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By GlobalData
