Fidelity Investments is becoming a much bigger part of the quickly growing exchange-traded funds business thanks to expanding a three-year partnership with BlackRock’s iShares unit, which is the largest provider in the ETF space. The agreement allows BlackRock to sell its iShares ETFs to Fidelity’s 18.5 million customers. At the same time, Fidelity Invesments clients will now have many more options to build to their investment portfolio with the always-popular iShares ETFs.
These companies agreed to an initial agreement in 2010. In that agreement, Fidelity offered 30 different ETFs to its clients for no commission fee. Under the new pact, which was announced Wednesday, Fidelity will be offering 65 ETFs commission-free. Many of the ETFs that will be offered commission-free to Fidelity clients are among the most popular ETFs in the industry. The 65 commission-free ETFs have a combined total of $250 billion in assets.
Fidelity hasn’t been a major player in the ETF industry, but the company is clearly trying to change that with this new deal. The best news for clients is as these online brokers realize the need to break into this industry, costs are going down. Finding your favorite ETF commission-free through an online broker is becoming easier by the day!
For more information on the new commission-free ETFs click here.