MutualFundWire.com: Fido Expands its Relationship with iShares
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Thursday, February 17, 2011

Fido Expands its Relationship with iShares


Fidelity Investments has expanded the number of iShares ETFs that can be traded for free on Fidelity.com from 25 to 30. The five new iShares ETFs in Fidelity’s commission-free line-up include: iShares iBoxx High Yield Corporate Bond Fund, iShares Dow Jones Select Dividend Index Fund, iShares Dow Jones International Select Dividend Fund, iShares Dow Jones US Real Estate Index Fund and iShares MSCI ACWI ex US Index Fund.

Reuters picked up on the coverage.
Fidelity Investments® Adds to Its Commission-Free iShares® ETF Line-Up 02/16/11 Investors Can Now Trade 30 iShares ETFs for Free* on Fidelity.com; New ETFsFocus On Investors’ Need for Income in Both Retirement and a Low-Rate Environment BOSTON – Fidelity Investments®, a leading online brokerage firm, today marks the one-year anniversary of its partnership with the global leader in Exchange Traded Funds, BlackRock®, by expanding the number of iShares® ETFs that can be traded for free on Fidelity.com from 25 to 30. The five new iShares ETFs in Fidelity’s commission-free line-up include funds seeking to generate interest and dividends to help investors establish a regular income stream, whether they are in retirement or are seeking higher yields in a low-rate environment.

The new iShares ETFs that investors can trade commission-free online at Fidelity.com include: iShares iBoxx High Yield Corporate Bond Fund (HYG), iShares Dow Jones Select Dividend Index Fund (DVY), iShares Dow Jones International Select Dividend Fund (IDV), iShares Dow Jones US Real Estate Index Fund (IYR) and iShares MSCI ACWI ex US Index Fund (ACWX). These five add to the 25 iShares ETFs that have been available commission free on Fidelity.com since February 2010, and which cover all nine domestic equity style categories from large value to small growth, as well as international equity and fixed-income asset classes. Fidelity’s commission-free ETF offer is unique in the financial services industry because the ETFs included are both non-proprietary and have no minimum holding period.

Investors working with independent registered investment advisors (RIAs) on Fidelity Institutional Wealth Services' brokerage platform also will be offered commission-free online trades on the same 30 iShares ETFs as Fidelity’s retail customers.

“We’re pleased to extend our partnership with BlackRock to give investors even more choices for how they can diversify their portfolios with ETFs – all at a tremendous value,” said James C. Burton, president of Fidelity’s retail brokerage business. “In fact, since launching the iShares offer a year ago, investors have saved millions of dollars in commissions on the 25 iShares ETFs in Fidelity’s original offer. And, with the five new iShares ETFs addressing timely customer needs, we are confident investors will continue to see the benefits of commission-free ETF investing at Fidelity.”

Fidelity’s iShares ETF offer has proven popular with customers. Over the past year, the increase in the number of Fidelity accounts holding at least one of the 25 commission-free ETFs, and the increase in flows within Fidelity accounts into these 25, both grew approximately three times the rate of ETFs outside of the offer.

According to Fidelity research, overall ETF investing is poised to increase in 2011. In December 2010, Fidelity surveyed investors and found that 44 percent are likely to invest in ETFs in the next three months. This is up 33 percent compared with the number of investors who answered similarly in December 2009 . And, a poll of active investors in October last year found that 74 percent of respondents indicated they would be trading more ETFs in the next 12 months.

Fidelity’s ETF Resources In addition to the price reductions Fidelity made in 2010, which gave investors the ability to trade more than 900 exchange-traded products, and all domestic equities, on Fidelity.com for a flat $7.95, it also launched industry-leading ETF research and analysis tools. Fidelity’s ETF Research Center , which is available to both Fidelity and non-Fidelity clients alike, includes :

• ETF Screener -- More than 100 screening criteria, with the ability to select multiple ranges or sectors within a single criterion, allowing investors to perform custom searches and save them for future use. • ETF Market Tracker – Easily discover what ETFs are moving in the market with the ability to zoom in to each category and view by performance, volume and net flows. • ETF Commentary and Expert Ideas -- See independent experts’ timely insights and news from the world of ETFs, and leverage the experts’ skills with predefined search strategies that investors can adjust, save, and use again later. • ETF education that provides the basics of ETFs, and the benefits and risks of Exchange Traded Notes (ETNs), leverage and inverse ETFs and ETNs, and index investing.

In addition, investors seeking more information and education about ETFs can choose to attend Fidelity’s seminar, ABCs of ETFs, available at Fidelity Investor Centers nationwide, and can access insights online via Fidelity Viewpoints, such as Five Investing Strategies Using ETFs and Building a Portfolio using ETFs.

About Fidelity Investments Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of nearly $3.5 trillion, including managed assets of $1.6 trillion, as of Dec. 31, 2010. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

ETFs are subject to management fees and other expenses. 1 Measurements based on Fidelity internal business data between January 31, 2010 and January 31, 2011. 2 Fidelity’s Image & Awareness study is conducted continuously online by GfK Custom Research North America.Q4 2010 results are based on 1,132 respondents who have a household income of at least $50,000 and investable assets of at least $100,000. Q4 2009 results are based on 1,059 respondents with the same characteristics as the respondents in Q4 2010. 3 Fidelity defines active investors as those making 36 – 120 trades in the last 12 months. The Fidelity Active Investor Poll was conducted October 26, 2010, at Fidelity’s San Francisco Traders’ Summit. In the ETF breakout session, 64 attendees responded to the question presented on hand-held Audience Response System devices provided by Turning Technologies. The majority of Traders’ Summit attendees were active investors. The results of this poll may not be representative of all investors meeting the same criteria as those surveyed at the Fidelity 2010 San Francisco Traders' Summit. 4 Fidelity's ETF Research Center is for self-directed investors to help them evaluate exchange traded products, including, but limited to exchange traded funds. News, commentaries and analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information in the Center is for informational purposes only and should not be considered investment advice or guidance, or an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy.

Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus, or if available, a summary prospectus containing this information. Read it carefully.

Fidelity’s $7.95 flat commission applies to online trades in all U.S. equity securities for Fidelity Brokerage Services LLC retail clients. It does not apply to foreign stock transactions or restricted securities transactions. Additional fees may be charged on orders that require special handling. A minimum deposit of $2,500 is required to open most Fidelity brokerage accounts. Waivers may apply. Commission schedules may vary for employee stock plan services transactions. See Fidelity.com for details.

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

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with a marketing program that includes promotion of iShares ETFs and certain commission waivers. Additional information about the sources, amounts, and terms of compensation is described in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.

Fidelity Investments is a registered service mark of FMR LLC.

iShares is a registered service mark of BlackRock Institutional Trust Company, N.A.

The third party trademarks appearing herein are the property of their respective owners.

Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI 02917

574749

© 2011 FMR LLC. All rights reserved.


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