Fidelity Investments, based in Boston, has announced it is launching the world's first zero expense ratio index funds tomorrow (3 August) in the US.
The Fidelity ZERO Total Market Index fund (FZROX) and the Fidelity ZERO International Index fund (FZILX) will cut costs by tracking Fidelity's in-house equity indices.
FZROX aims to provide returns that correspond to the total return of a broad range of publicly traded companies in the US while FZILX targets returns in line with the total return of foreign developed and emerging stocks.
As well as the 0% expense ratio, there is no minimum investment for either fund.
In a statement on its website the group said: "At Fidelity, we're committed to giving you value you can't find anywhere else. That's why we're introducing zero expense ratio index mutual funds. Layer on no minimums to invest in Fidelity mutual funds, no minimums to open an account, and no account fees - now that's value."
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