HomePlan FiduciaryFiduciary advisers should be weighing the risks and upsides of securities lending

Fiduciary advisers should be weighing the risks and upsides of securities lending

Fidelity Investments is making 401(k) advisers’ lives a little more complicated.

The Boston-based behemoth dropped some eye-popping news Wednesday: as of Friday, it will begin offering two index mutual funds with a price tag of 0.00%. Yes, funds free of cost to investors — the industry’s first.

The funds, in the total-market and international equity categories, will be available to retail investors. They won’t be offered to participants in defined-contribution plans, at least initially. But let’s not kid ourselves — it’s only a matter of time before Fidelity or another index-fund giant, perhaps BlackRock Inc. or Vanguard Group, brings a no-cost fund to 401(k) investors.

Read full article here: http://www.investmentnews.com/article/20180802/BLOG03/180809980/fidelitys-zero-cost-funds-raise-issues-for-401-k-advisers 

Tags

No comments

leave a comment