I know the talk around town is how they lowered two funds to 0.00%….But who cares, because the really great funds are ALMOST FREE now after the fee drop.
I know have a fully diversified index portfolio of the following:
Fidelity S&P 500 index fund PREMIUM CLASS
Fidelity Extended Market index fund PREMIUM
Fidelity Total Foreign Stock Market PREMIUM
FIdelity Emerging Markets PREMIUM
Fidelity Small Cap index Fund PREMIUM
Fidelity Large Cap Value Index Fund Premium
Fidelity Nasdaq Index Fund PREMIUM
and Fidelity Medical Technology and devices Sector fund (just because I use the Machines these guys make at work).
That is 8 premium class index funds with expense ratios of roughly 0.01- 0.08 LOL! (the sector fund is 0.7) and I only put $50 into each fund where in the past it would of cost $10,000+ to get into each of these funds.
We have truly just entered the golden age of investing and it brings a tear to my eye!
I no longer have to screw with my ETF’s not reinvesting the dividends an logging in trying to place limit orders everytime I add money to my account.
This really is revolutionary, and I feel Fidelity even topped Vanguard with this one.
Not only is this a game changer for fidelity losing market share to Vanguard. I dare to say that this almost makes ETF’s irrelevant for long term investors. ETF’s were basically the only way to go for investors just starting out, or investors who did not have $50,000 to properly diversify a portfolio is the lowest cost premium funds.
Fidelity destroyed the minimums, and undercut the fee’s that were the two main advantages index ETF’s held over index mutual funds. This is such a game changer I see zero reason to even buy the ETF’s anymore unless you are an active trader. My mind is totally blown.
Disclaimer: This content does not necessarily represent the views of IWB.