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July 31, 2017 12:00 PM EDT

Fidelity Cuts Expenses on 14 Index Mutual Funds

BOSTON--(BUSINESS WIRE)-- Fidelity Investments®, one of the industry’s largest, most experienced providers of low-cost active and index investment products, today announced that effective August 1, 2017 it will reduce total expensesi on 14 of its stock and bond index mutual funds. With this action, 100% of Fidelity’s stock and bond index mutual funds and sector ETFs will have total net expenses lower than their comparable Vanguard fund.ii

“For index investors focused on cost, there’s no need to look further than Fidelity. Already one of the industry’s lowest cost index fund providers, we now offer an even better value,” said Colby Penzone, senior vice president for Fidelity’s Investment Product Group.

“We believe we have an index value proposition unsurpassed in our industry,” continued Penzone. “When you combine low expenses with our award-winning online brokerage platform, mobile applications, more than 190 Investor Centers in the U.S., and live 24/7 customer service via phone, we believe Fidelity provides the best customer experience and value in the industry.”

The average expenses across Fidelity’s stock and bond index fund line-up will decrease to 9.9 basis points (0.099%), down from 11.0 basis points today. The expense reductions are expected to save current shareholders approximately $18 million annually.

Significant Reduction in Index Fund Expenses

Effective August 1, 2017, Fidelity will reduce total expenses across 14 of its 20 stock and bond index mutual funds.

                 
Fund/Share Class   Ticker  

Previous TotalNet Expenses

 

New TotalNet Expenses

  Savings
Fidelity® 500 Index Fund        
Investor FUSEX 0.090 0.090 0.000
Premium FUSVX 0.045 0.035 0.010
Institutional FXSIX 0.035 0.030 0.005
Institutional Premium   FXAIX   0.015   0.015   0.000
Fidelity® Total Market Index
Investor FSTMX 0.090 0.090 0.000
Premium FSTVX 0.045 0.035 0.010
Institutional FSKTX 0.035 0.030 0.005
Institutional Premium   FSKAX   0.015   0.015   0.000
Fidelity® Extended Market Index Fund
Investor FSEMX 0.100 0.100 0.000
Premium FSEVX 0.070 0.070 0.000
Institutional Premium   FSMAX   0.045   0.045   0.000
Fidelity® Large Cap Growth Index Fund
Investor FSUIX 0.210 0.170 0.040
Premium FSUPX 0.070 0.050 0.020
Institutional FSWIX 0.060 0.040 0.020
Institutional Premium   FSPGX   0.050   0.035   0.015
Fidelity® Large Cap Value Index Fund
Investor FLCDX 0.210 0.170 0.040
Premium FLCHX 0.070 0.050 0.020
Institutional FLCMX 0.060 0.040 0.020
Institutional Premium   FLCOX   0.050   0.035   0.015
Fidelity® Mid Cap Index Fund
Investor FSCLX 0.190 0.170 0.020
Premium FSCKX 0.070 0.050 0.020
Institutional FSTPX 0.060 0.040 0.020
Institutional Premium   FSMDX   0.040   0.035   0.005
Fidelity® Small Cap Index Fund
Investor FSSPX 0.190 0.170 0.020
Premium FSSVX 0.070 0.050 0.020
Institutional FSSSX 0.060 0.040 0.020
Institutional Premium   FSSNX   0.040   0.035   0.005
                 
Fund/Share Class   Ticker  

Previous TotalNet Expenses

 

New TotalNet Expenses

  Savings
Fidelity International Index Fund        
Investor FSIIX 0.190 0.160 0.030
Premium FSIVX 0.080 0.060 0.020
Institutional FSPNX 0.060 0.050 0.010
Institutional Premium   FSPSX   0.050   0.045   0.005
Fidelity® Global ex US Index Fund
Investor FSGUX 0.180 0.170 0.010
Premium FSGDX 0.110 0.100 0.010
Institutional FSGSX 0.090 0.080 0.010
Institutional Premium   FSGGX   0.060   0.060   0.000
Fidelity® Total International Index Fund
Investor FTIGX 0.180 0.170 0.010
Premium FTIPX 0.110 0.100 0.010
Institutional FTIUX 0.090 0.080 0.010
Institutional Premium   FTIHX   0.060   0.060   0.000
Fidelity® Emerging Markets Fund
Investor FPEMX 0.300 0.290 0.010
Premium FPMAX 0.140 0.130 0.010
Institutional FPMIX 0.110 0.100 0.010
Institutional Premium   FPADX   0.090   0.080   0.010
Fidelity® Real Estate Index Fund
Investor FRXIX 0.230 0.230 0.000
Premium FSRVX 0.090 0.090 0.000
Institutional   FSRNX   0.070   0.070   0.000
Fidelity® US Bond Index Fund
Investor FBIDX 0.150 0.140 0.010
Premium FSITX 0.050 0.045 0.005
Institutional FXSTX 0.040 0.035 0.005
Institutional Premium   FXNAX   0.030   0.025   0.005
Fidelity® Short-Term Treasury Bond Index Fund
Investor FSBIX 0.190 0.160 0.030
Premium   FSBAX   0.090   0.060   0.030
Fidelity® Intermediate Treasury Bond Index Fund
Investor FIBIX 0.190 0.160 0.030
Premium   FIBAX   0.090   0.060   0.030
Fidelity® Long-Term Treasury Bond Index Fund
Investor FLBIX 0.190 0.160 0.030
Premium   FLBAX   0.090   0.060   0.030
                 
Fund/Share Class   Ticker  

Previous TotalNet Expenses

 

New TotalNet Expenses

  Savings
Fidelity® Inflation-Protected Bond Index Fund        
Investor FSIQX 0.190 0.190 0.000
Premium FSIYX 0.090 0.090 0.000
Institutional FIPBX 0.060 0.060 0.000
Institutional Premium   FIPDX   0.050   0.050   0.000
Fidelity® Nasdaq® Composite Index Fund   FNCMX   0.300   0.300   0.000
Fidelity® U.S. Sustainability Index Fund
Investor FENSX 0.210 0.210 0.000
Premium FPNSX 0.140 0.140 0.000
Institutional   FITLX   0.110   0.110   0.000
Fidelity® International Sustainability Index Fund
Investor FNIYX 0.300 0.300 0.000
Premium FNIRX 0.250 0.250 0.000
Institutional   FNIDX   0.200   0.200   0.000
 

Fidelity will also reduce the eligibility minimum for Institutional Premium Class of Fidelity 500 Index from $200 million to $100 million. The investment minimums for each of Fidelity’s four index mutual fund share classes are:

                         
      Investor     Premium     Institutional     Institutional Premium
Employer-sponsored retirement plans     No minimum     No minimum    

$5 million(refers to plan sponsor’s investment in fund)

   

$100 million(refers to plan sponsor’s investment in fund)

Fee-based wrap programs

No minimum No minimum

$5 million(refers to wrap program provider’s investment in fund)

$100 million(refers to wrap program provider’s investment in fund)

Fund of funds No minimum No minimum

$5 million(refers to top-level fund’s investment in fund)

$100 million(refers to top-level fund’s investment in fund)

Fidelity-managed 529 plans No minimum No minimum No minimum No minimum
Other accounts     $2,500     $10,000     $5 million    

$100 million

 

“Whether index funds, actively managed funds or managed solutions, Fidelity has proven time and again its commitment to offering our tens of millions of customers -- individual investors, workplace retirement plan sponsors and participants, and financial advisors -- one of the most comprehensive and competitive investment product lines in the industry,” said Penzone.

“As we’ve done for 70 years, we’ll continue to look for opportunities to strengthen our investment products regardless of asset class, style or vehicle. As a diversified financial services provider, we’re focused on helping our customers meet their unique investment needs by providing them access to choice, value and expertise,” concluded Penzone.

About Fidelity Investments

Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $6.2 trillion, including managed assets of $2.3 trillion as of June 30, 2017, we focus on meeting the unique needs of a diverse set of customers: helping more than 26 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients’ money. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.

Before investing in any mutual fund or exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, an offering circular, or, if available, a summary prospectus containing this information. Read it carefully.

IMPORTANT FEE INFORMATION: Certain of Fidelity’s stock and bond index mutual funds have max short-term redemption fees of up to 1.5% for eligible shares held less than a maximum of 90 days. Fidelity may deduct a small-balance maintenance fee of $12 from a fund balance with a value of less than $2,000 in shares.

Please note: When comparing funds, please consider all important factors, including information pertaining to fund fees, fund features, and fund objectives. While funds may track an index, the indices and strategies employed in seeking to achieve an investment goal may be different. Each fund’s investment object and strategy and index tracked to achieve investment goals may differ. For new investors, funding investment minimums may be different.

All trademarks and service marks are the property of FMR LLC or its affiliated companies.

Investing involves risk, including risk of loss.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market or economic developments, all of which are magnified in emerging markets. Investing in stock involves risks, including the loss of principal.

ETFs are subject to market fluctuations of their underlying investments and may trade at a discount to NAV.

Fidelity Brokerage Services LLC, Member NYSE, SIPC900 Salem Street, Smithfield, RI 02917

Fidelity Investments Institutional Services Company, Inc.500 Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC,200 Seaport Boulevard, Boston, MA 02110

811199.2.0© 2017 FMR LLC. All rights reserved.

i Expenses are the total annual fund operating expenses from the fund’s most recent prospectus.ii Based on 17 of 17 comparable "Premium Share Class" stock and bond index mutual funds and 11 of 11 comparable sector ETFs and their expense ratios. See Fidelity.com/IndexInvesting for the comparative product listing.

Fidelity Investments
Follow us on Twitter @FidelityNews
Corporate Communications, 617-563-5800
[email protected]
or
Jeff Cathie, 617-563-2420
[email protected]
or
Charles Keller, 617-563-2302
[email protected]

Source: Fidelity Investments


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