Fidelity® Brings Even Greater Value to Index Investors

Fidelity Cuts Expenses on 14 Index Mutual Funds

07/31/2017

BOSTON — Fidelity Investments®, one of the industry's largest, most experienced providers of low-cost active and index investment products, today announced that effective August 1, 2017 it will reduce total expenses1 on 14 of its stock and bond index mutual funds. With this action, 100% of Fidelity's stock and bond index mutual funds and sector ETFs will have total net expenses lower than their comparable Vanguard fund.2

“For index investors focused on cost, there’s no need to look further than Fidelity. Already one of the industry’s lowest cost index fund providers, we now offer an even better value,” said Colby Penzone, senior vice president for Fidelity’s Investment Product Group.

"We believe we have an index value proposition unsurpassed in our industry," continued Penzone. "When you combine low expenses with our award-winning online brokerage platform, mobile applications, more than 190 Investor Centers in the U.S., and live 24/7 customer service via phone, we believe Fidelity provides the best customer experience and value in the industry."

The average expenses across Fidelity’s stock and bond index fund line-up will decrease to 9.9 basis points (0.099%), down from 11.0 basis points today. The expense reductions are expected to save current shareholders approximately $18 million annually.

Significant Reduction in Index Fund Expenses

Effective August 1, 2017, Fidelity will reduce total expenses across 14 of its 20 stock and bond index mutual funds.

Fund/Share Class Ticker Previous Total
Net Expenses
New Total
Net Expenses
Savings
Fidelity® 500 Index Fund
Investor FUSEX 0.090 0.090 0.000
Premium FUSVX 0.045 0.035 0.010
Institutional FXSIX 0.035 0.030 0.005
Institutional Premium FXAIX 0.015 0.015 0.000
Fidelity® Total Market Index
Investor FSTMX 0.090 0.090 0.000
Premium FSTVX 0.045 0.035 0.010
Institutional FSKTX 0.035 0.030 0.005
Institutional Premium FSKAX 0.015 0.015 0.000
Fidelity® Extended Market Index Fund
Investor FSEMX 0.100 0.100 0.000
Premium FSEVX 0.070 0.070 0.000
Institutional Premium FSMAX 0.045 0.045 0.000
Fidelity® Large Cap Growth Index Fund
Investor FSUIX 0.210 0.170 0.040
Premium FSUPX 0.070 0.050 0.020
Institutional FSWIX 0.060 0.040 0.020
Institutional Premium FSPGX 0.050 0.035 0.015
Fidelity® Large Cap Value Index Fund
Investor FLCDX 0.210 0.170 0.040
Premium FLCHX 0.070 0.050 0.020
Institutional FLCMX 0.060 0.040 0.020
Institutional Premium FLCOX 0.050 0.035 0.015
Fidelity® Mid Cap Index Fund
Investor FSCLX 0.190 0.170 0.020
Premium FSCKX 0.070 0.050 0.020
Institutional FSTPX 0.060 0.040 0.020
Institutional Premium FSMDX 0.040 0.035 0.005
Fidelity® Small Cap Index Fund
Investor FSSPX 0.190 0.170 0.020
Premium FSSVX 0.070 0.050 0.020
Institutional FSSSX 0.060 0.040 0.020
Institutional Premium FSSNX 0.040 0.035 0.005


Fund/Share Class Ticker Previous Total
Net Expenses
New Total
Net Expenses
Savings
Fidelity International Index Fund
Investor FSIIX 0.190 0.160 0.030
Premium FSIVX 0.080 0.060 0.020
Institutional FSPNX 0.060 0.050 0.010
Institutional Premium FSPSX 0.050 0.045 0.005
Fidelity® Global ex US Index Fund
Investor FSGUX 0.180 0.170 0.010
Premium FSGDX 0.110 0.100 0.010
Institutional FSGSX 0.090 0.080 0.010
Institutional Premium FSGGX 0.060 0.060 0.000
Fidelity® Total International Index Fund
Investor FTIGX 0.180 0.170 0.010
Premium FTIPX 0.110 0.100 0.010
Institutional FTIUX 0.090 0.080 0.010
Institutional Premium FTIHX 0.060 0.060 0.000
Fidelity® Emerging Markets Fund
Investor FPEMX 0.300 0.290 0.010
Premium FPMAX 0.140 0.130 0.010
Institutional FPMIX 0.110 0.100 0.010
Institutional Premium FPADX 0.090 0.080 0.010
Fidelity® Real Estate Index Fund
Investor FRXIX 0.230 0.230 0.000
Premium FSRVX 0.090 0.090 0.000
Institutional FSRNX 0.070 0.070 0.000
Fidelity® US Bond Index Fund
Investor FBIDX 0.150 0.140 0.010
Premium FSITX 0.050 0.045 0.005
Institutional FXSTX 0.040 0.035 0.005
Institutional Premium FXNAX 0.030 0.025 0.005
Fidelity® Short-Term Treasury Bond Index Fund
Investor FSBIX 0.190 0.160 0.030
Premium FSBAX 0.090 0.060 0.030
Fidelity® Intermediate Treasury Bond Index Fund
Investor FIBIX 0.190 0.160 0.030
Premium FIBAX 0.090 0.060 0.030
Fidelity® Long-Term Treasury Bond Index Fund
Investor FLBIX 0.190 0.160 0.030
Premium FLBAX 0.090 0.060 0.030


Fund/Share Class Ticker Previous Total
Net Expenses
New Total
Net Expenses
Savings
Fidelity® Inflation-Protected Bond Index Fund
Investor FSIQX 0.190 0.190 0.000
Premium FSIYX 0.090 0.090 0.000
Institutional FIPBX 0.060 0.060 0.000
Institutional Premium FIPDX 0.050 0.050 0.000
Fidelity® Nasdaq® Composite Index Fund FNCMX 0.300 0.300 0.000
Fidelity® U.S. Sustainability Index Fund
Investor FENSX 0.210 0.210 0.000
Premium FPNSX 0.140 0.140 0.000
Institutional FITLX 0.110 0.110 0.000
Fidelity® International Sustainability Index Fund
Investor FNIYX 0.300 0.300 0.000
Premium FNIRX 0.250 0.250 0.000
Institutional FNIDX 0.200 0.200 0.000

Fidelity will also reduce the eligibility minimum for Institutional Premium Class of Fidelity 500 Index from $200 million to $100 million. The investment minimums for each of Fidelity’s four index mutual fund share classes are:

  Investor Premium Institutional Institutional Premium
Employer-sponsored retirement plans No minimum No minimum $5 million
(refers to plan sponsor's investment in fund)
$100 million
(refers to plan sponsor's investment in fund)
Fee-based wrap programs No minimum No minimum $5 million
(refers to wrap program provider's investment in fund)
$100 million
(refers to wrap program provider's investment in fund)
Fund of funds No minimum No minimum $5 million
(refers to top-level fund’s investment in fund)
$100 million
(refers to top-level fund's investment in fund)
Fidelity-managed 529 plans No minimum No minimum No minimum No minimum
Other accounts $2,500 $10,000 $5 million $100 million

"Whether index funds, actively managed funds or managed solutions, Fidelity has proven time and again its commitment to offering our tens of millions of customers—individual investors, workplace retirement plan sponsors and participants, and financial advisors—one of the most comprehensive and competitive investment product lines in the industry," said Penzone.

"As we've done for 70 years, we’ll continue to look for opportunities to strengthen our investment products regardless of asset class, style or vehicle. As a diversified financial services provider, we’re focused on helping our customers meet their unique investment needs by providing them access to choice, value and expertise," concluded Penzone.

About Fidelity Investments

Fidelity's mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $6.2 trillion, including managed assets of $2.3 trillion as of June 30, 2017, we focus on meeting the unique needs of a diverse set of customers: helping more than 26 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients' money. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.

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