Fidelity launched a zero fee index fund last month and turned the financial media on its head. Not because it was unexpected but because it wasn’t expected this soon. I assumed it would be either Vanguard or iShares to do it first. Fidelity figures it will make money from people using their other funds to more than offset the “cost” of the free funds. It is yet to be seen how this may affect their higher fee managed funds.
This is yet another win for investors. There could be a time in the not to distant future where the only fee investors pay is to their financial planners. It will be transparent and fully understood and the days of selling and commissions will be over. All “advisors” will be fiduciaries and fee-only. Humbly we can say we were ahead of this curve.