Fidelity announced today that it will be offering a suite of 25 iShares ETFs commission-free. In our view, the 25 ETFs selected (see the full list below) are among the most relevant product offerings from the largest ETF provider and will allow investors to build high-quality, transparent, liquid, and tax-efficient portfolios without the single-largest cost burden they previously faced when comparing ETFs to indexed mutual funds--trading commissions.
Partnering with ETF industry behemoth iShares, which holds a 50% market share of ETF assets, is a well calculated competitive response to the commission-free ETF offering from Charles Schwab announced last November. We are still big fans of Schwab's move, but Fidelity's partnership brings the competition to a new level.
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Paul Justice does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.