Fidelity sends me marketing mails from time to time. The latest mail piece included some good information worth noting.
Under the heading for ETFs, it said Fidelity added another 5 iShares ETFs to the commission-free list. Previously Fidelity offered 65 iShares ETFs commission-free. Not it offers 70. The letter didn’t say which were the five new ones. The online list was updated to show the 70 commission-free iShares ETFs. It also doesn’t show which five are new.
There is one FAQ:
Why did Fidelity add 5 new ETFs to the line up?
iShares continues to add valuable products that benefit customers of all types. The recent expansion of the Core iShares offering includes currently popular ETFs—dividend-focused ETFs and Europe, for instance—at low cost. The five funds that we have added to our line up can help provide Fidelity investors with greater diversification options and help contribute to a healthy overall portfolio allocation.
That’s great, but tell me the 5 names!
It took some digging. Here are the five new ones:
| Name | Index Tracked | Expense Ratio |
|---|---|---|
| iShares Core Dividend Growth (DGRO) | Morningstar US Dividend Growth Index | 0.12% |
| iShares Core High Dividend (HDV) | Morningstar Dividend Yield Focus Index | 0.12% |
| iShares Core U.S. Value (IUSV) | Russell 3000 Value Index | 0.09% |
| iShares Core U.S. Growth (IUSG) | Russell 3000 Growth Index | 0.09% |
| iShares Core MSCI Europe (IEUR) | MSCI Europe Investable Market Index | 0.14% |
Among these, iShares Core U.S. Value (IUSV) is an interesting one. It invests in value stocks across large cap, mid cap, and small cap. Vanguard’s Value ETF only invests in large cap stocks.
With the addition of these five iShares Core ETFs, Fidelity now offers 15 out of 20 iShares Core ETFs commission-free. The 5 remaining iShares Core ETFs not yet on the commission-free list are:
| Name | Index Tracked | Expense Ratio |
|---|---|---|
| iShares Core MSCI Pacific (IPAC) | MSCI Pacific Investable Market Index | 0.14% |
| iShares Core Total USD Bond Market (IUSB) | Barclays U.S. Universal Index | 0.15% |
| iShares Core U.S. Treasury Bond (GOVT) | Barclays U.S. Treasury Bond Index | 0.15% |
| iShares Core GNMA Bond (GNMA) | Barclays U.S. GNMA Bond Index | 0.15% |
| iShares Core U.S. Credit Bond (CRED) | Barclays U.S. Credit Bond Index | 0.15% |
If the list expands again, these will be the likely candidates.
Between Spartan index funds and these commission-free iShares ETFs, an investor can have a solid portfolio at very low cost at Fidelity.
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serbeer says
Thanks for the news Harry.
If only Ameritrade now expended its list of commission-free ETFs to include VPL to compliment VGK (that is already in the list), I’d be a happy camper. As is, VPL is the only ETF I shell out commissions for every once in a while. It is hard to re-balance to my Europe vs Asian allocation using standard mix ETFs that usually have 2/3 in Europe stocks and 1/3 in Asian.
So, if you know of good low-ER commission-free equivalent for VPL, don’t keep it a secret 🙂
JohnInIowa says
serbeer, if VPL is an Asia fund that includes Japan, could you combine two funds to get the same effect, one Asia ex-Japan fund, and the other a pure Japan fund? I think I noticed one of each in the list Harry posted.
Mike says
Fidelity is offering up to 10% bonus on IRA contributions over three years if you transfer an IRA account to them. Maximum amount works out to $1950, based on a transfer of $500k or more, and maximum IRA contributions for the over 55 crowd. I currently hold all of my investments at TD Ameritrade and use their commission-free ETF platform, but I may consider transferring a couple of IRAs over to Fidelity given this incentive. Anyone else considering this move?