Fidelity's Commission-Free Trading On 25 iShares

February 02, 2010

 

Fidelity Investments announced today it will offer free trading on 25 widely held iShares exchange-traded funds, including some of the most popular ETFs in the world, including the iShares S&P 500 ETF (NYSEArca: IVV), iShares MSCI EAFE ETF (NYSEArca: EFA) and iShares MSCI Emerging Markets ETF (NYSEArca: EEM).

The brokerage giant said it has partnered with iShares’ sponsor BlackRock to offer free trades “for a period anticipated to be at least three years.”

The move comes just months after Fidelity’s arch competitor, Charles Schwab, launched its own family of ETFs and offered Schwab brokerage customers the opportunity to trade those funds for free. Schwab currently offers six such ETFs, and is planning to launch at least two more.

The Fidelity/BlackRock deal covers a much broader spectrum of ETFs, including ETFs covering most major equity and fixed-income categories. It covers 10 of the 25 largest ETFs in the
U.S.

 


U.S.
Equity

International Equity

Fixed Income

Total Market

iShares MSCI EAFE

EFA

iShares Barclays Aggregate

AGG

iShares Russell 3000

IWV

iShares MSCI EAFE Small Cap

SCZ

iShares Barclays TIPS

TIP

Large Cap

iShares MSCI Emerging Markets

EEM

iShares iBoxx $ Investment Grade Corporate

LQD

iShares S&P 500

IVV

iShares MSCI ACWI

ACWI

iShares JP Morgan USD Emerging Markets

EMB

iShares S&P 500 Growth

IVW

 

iShares S&P National AMT-Free Municipal

MUB

iShares S&P 500 Value

IVE

 

iShares Russell 1000

IWB

iShares Russell 1000 Growth

IWF

iShares Russell 1000 Value

IWD

Mid Cap

iShares S&P MidCap 400

IJH

iShares S&P MidCap 400 Growth

IJK

iShares S&P MidCap 400 Value

IJJ

Small Cap

iShares S&P SmallCap 600

IJR

iShares S&P SmallCap 600 Growth

IJT

iShares S&P SmallCap 600 Value

IJS

iShares Russell 2000

IWM

iShares Russell 2000 Growth


IWO

iShares Russell 2000 Value

IWN

 

The move could help drive significant retail interest in ETFs. Commissions make retail strategies like dollar-cost-averaging unviable. By removing that barrier, brokerages like Schwab and Fidelity could help ETFs grab a larger share of the mutual fund marketplace.

 

 

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