Last updated: 13:17 / Thursday, 14 March 2013
3-year-old partnership

Fidelity and BlackRock join forces in ETF fee war

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Fidelity and BlackRock join forces in ETF fee war

Fidelity and Blackrock have formed a strategic alliance to allow greater access to the iShares ETF range.

Fidelity brokerage customers will be able to trade 65 BlackRock iShares ETFs without paying a commission, up from 30 funds currently. It will include the 10 iShares Core ETFs, as well as a range of international, domestic, specialised equity, fixed income and commodity approaches.

The two companies will work together to develop passive sector-based strategies, which are designed to complement the funds already on offer through BlackRock’s iShares platform.

BlackRock will also help Fidelity develop an investment strategy for clients based on a mix of ETFs and will support some of the firm's own efforts to start a new line of equity sector ETFs.

Boston-based Fidelity, which manages some $1.7 trillion, mostly in mutual funds, has largely been left behind in the ETF explosion of the past decade.

By contrast, BlackRock acquired top ETF provider iShares in 2009. Among its nearly $4 trillion of total assets, it oversees $708 billion of ETFs.

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