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Fidelity - Lowest Cost Index Funds (for now)

© Kirk Lindstrom

It used to be that you had to go to Vanguard Funds for the lowest cost index funds . We are starting to see competition in the low cost market now that investors are getting smarter, hopefully from sites such as this where I recommend index funds to make up the core of your "core and explore" portfolio.

Fidelity Lowers Fees to 0.10% on Many Index Funds

Fidelity writes on their web site:

Expenses as Low as 10 Basis Points on Fidelity Index Funds To keep your investing costs low, several of our funds now have new contracts that bind them to total expenses of 0.10% (10 basis points) of the fund's assets. In other words, our expenses on these funds are low and cannot be raised without a vote by the funds' shareholders.

I think this is great. Fidelity has a "redemption fee" for these funds which you must pay if you hold the funds less than 90 days. This is to discourage trading and it helps keep their expenses low.

Here is a list of their 10 Basis Point Index Funds

Spartan®(SPTN)Fund Index Ticker Redemption Fee
SPTN 500 S&P 500 FSMKX 0.50% < 90 days
SPTN Extended Wilshire5000 FSEMX 0.75% < 90 days
Market less S&P500
SPTN International MSCI EAFE FSIIX 1.00% < 90 days
SPTN Total Market Wilshire5000 FSTMX 0.50% < 90 days
SPTN US Equity S&P 500 FUSEX $100,000 min.

These funds have a $10,000 minimum investment except for SEP-IRAs or Keoghs where it is only $500.

The S&P 500 is a registered trademark of The McGraw-Hill Companies, Inc., licensed for use by Fidelity Distributors Corporation. It is an unmanaged market capitalization-weighted index of common stocks.

DJ Wilshire 5000 Composite Index is an unmanaged, market capitalization-weighted index of substantially all equity securities of U.S.-headquartered companies with readily available price data.

DJ Wilshire 4500 Completion Index is an unmanaged, market capitalization-weighted index of substantially all equity securities of U.S.-headquartered companies with readily available price data, except those included in the Standard & Poor's® 500 Index (S&P 500®). For the DJ Wilshire 4500 and 5000 Indexes, two versions of the index are maintained, one weighted by full market capitalization and the other weighted by float-adjusted market capitalization.

The MSCI EAFE is a registered service mark of Morgan Stanley and has been licensed for use by FMR Corp. The MSCI EAFE Index is an unmanaged market capitalization weighted index of over 1,000 equity securities of companies located in Europe, Australasia and the Far East. You cannot invest directly in an index

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