ETF Watch: Fidelity Cuts Fees

In a move that appears directly aimed at Vanguard, Fidelity has announced that it is reducing the fees on 27 of its index mutual funds and ETFs. The changes are effective July 1.

The 11 Fidelity sector ETFs will each see their expense ratios fall from 0.12% to 0.084%. The Vanguard sector ETFs cost 0.10%. Meanwhile, the 16 index mutual funds will see their expense ratios fall anywhere from 0.5 to 0.16%.

According to Fidelity, the changes are projected to save investors up to $20 million per year.

The affected ETFs include:

• Fidelity MSCI Consumer Discretionary Index ETF (FDIS | A-93)
• Fidelity MSCI Consumer Staples Index ETF (FSTA | A-92)
• Fidelity MSCI Energy Index ETF (FENY | A-92)
• Fidelity MSCI Financials Index ETF (FNCL | A-96)
• Fidelity MSCI Health Care Index ETF (FHLC | A-96)
• Fidelity MSCI Industrials Index ETF (FIDU | A-93)
• Fidelity MSCI Information Technology Index ETF (FTEC | A-93)
• Fidelity MSCI Materials Index ETF (FMAT | A-85)
• Fidelity MSCI Telecommunications Index ETF (FCOM | A-73)
• Fidelity MSCI Utilities Index ETF (FUTY | A-93)
• Fidelity MSCI Real Estate Index ETF (FREL)

Contact Heather Bell at [email protected].