Fidelity to Charge $100 Servicing Fee on Some ETFs

(MarketWatch) - Fidelity Investments is planning to charge investors a $100 servicing fee when placing buy orders on exchange-traded funds issued by nine firms.

The new servicing charge — which may be imposed on ETFs issued by Simplify Asset Management, AXS Investments, Day Hagan, Sterling Capital, Cambiar, Regents Park, Rayliant, Adaptive and Running Oak — is set to take effect on June 3, according to a Bloomberg News report. A Fidelity spokesperson confirmed that the report is accurate.

The new fee will apply to ETFs issued by a small group of asset managers that don’t participate in a maintenance arrangement with Fidelity, according to Bloomberg.

“We remain committed to providing clients choice with an open-architecture investment platform,” the Fidelity spokesperson told MarketWatch in an email Monday. “Support fees help maintain the technology and service operations needed to ensure a secure and positive experience for investors.”

Fidelity may periodically update its “Surcharge-Eligible ETF” list, which could change again before June 3, according to the Bloomberg report.

At the end of March, U.S.-listed ETFs had a total $8.9 trillion of assets under management, according to a research note from Citigroup on Monday. Last month, investors poured more capital into domestic equity ETFs as the S&P 500 index SPX broke past 5,200 points, Citi Research said.

ETFs managed by State Street, Vanguard and BlackRock attracted the biggest inflows last month — including the SPDR S&P 500 ETF Trust SPY, Vanguard S&P 500 ETF VOO and iShares S&P 500 Growth ETFIVW, according to the Citi note.

By Christine Idzelis


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