Fidelity® Lowers Expenses on 27 Index Mutual Funds and ETFs

Fidelity’s Index Funds Already Among Very Lowest in Industry; Expense Reductions Offer Even Better Value, Save Shareholders $20 Million Annually

BOSTON — Fidelity Investments®, one of the industry's largest, most experienced providers of low-cost active and index investment products, today announced that effective July 1, 2016 it will reduce total expenses1 on 27 of its equity and bond index mutual funds and exchange traded funds (ETFs). The average expenses across Fidelity's index fund line-up will decrease to 10.2 basis points (0.102%), down from 11.6 basis points today. The expense reductions are expected to save current shareholders approximately $20 million annually.

"We are taking already one of the lowest cost index fund offerings in the industry and making it even more compelling," said Colby Penzone, senior vice president for Fidelity's Investment Product Group.

"While cost matters, investors should also consider the overall experience and value a financial services firm can deliver when deciding where to invest," continued Penzone. "When you combine low expenses with access to 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."

Fidelity has been managing index mutual funds for more than 25 years and is currently the second-largest index mutual fund manager in the industry with more than $216 billion in assets under management2. Fidelity offers 19 equity, fixed income and hybrid index mutual funds, and manages more than $3.5 billion in assets across 12 index ETFs3. In addition to having some of the lowest total net expenses in the industry, Fidelity's index funds are also offered to customers on the company's platform with no transaction fees or sales loads.

Significant Reduction in Index Fund Expenses

Effective July 1, 2016, Fidelity will reduce total expenses across 27 of its index funds, which includes 16 index mutual funds and 11 index ETFs.

Mutual Fund/Class Previous Total Expenses (bp) New Total Expenses (bp) Savings (bp)
Fidelity 500 Index Fund
Investor 9.5 9 0.5
Premium 5 4.5 0.5
Institutional 4 3.5 0.5
Institutional Premium 2 1.5 0.5
Fidelity Total Market Index Fund
Investor 10 9 1
Premium 5 4.5 0.5
Institutional 4 3.5 0.5
Institutional Premium 3.5 1.5 2
Fidelity Extended Market Index Fund
Investor 10 10 -
Premium 7 7 -
Institutional Premium 6 4.5 1.5
Fidelity Large Cap Growth Index Fund
Investor 22 21 1
Premium 8 7 1
Institutional 7 6 1
Institutional Premium 6 5 1
Fidelity Large Cap Value Index Fund
Investor 22 21 1
Premium 8 7 1
Institutional 7 6 1
Institutional Premium 6 5 1
Fidelity Mid Cap Index Fund
Investor 22 19 3
Premium 8 7 1
Institutional 6 6 -
Institutional Premium 4 4 -
Fidelity Small Cap Index Fund
Investor 23 19 4
Premium 9 7 2
Institutional 7 6 1
Institutional Premium 5 4 1

Mutual Fund/Class Previous Total Expenses (bp) New Total Expenses (bp) Savings (bp)
Fidelity International Index Fund
Investor 20 19 1
Premium 12 8 4
Institutional 7 6 1
Institutional Premium 6 5 1
Fidelity Global ex U.S. Index Fund
Investor 19 18 1
Premium 12 11 1
Institutional 10 9 1
Institutional Premium 7 6 1
Fidelity Total International Index Fund
Investor 19 18 1
Premium 12 11 1
Institutional 10 9 1
Institutional Premium 7 6 1
Fidelity Emerging Markets Index Fund
Investor 31 30 1
Premium 20 14 6
Institutional 13 11 2
Institutional Premium 10 9 1
Fidelity U.S. Bond Index Fund
Investor 20 15 5
Premium 7 5 2
Institutional 6 4 2
Institutional Premium 5 3 2
Fidelity Short-Term Treasury Bond Index Fund
Investor 20 19 1
Premium 10 9 1
Fidelity Intermediate Treasury Bond Index Fund
Investor 20 19 1
Premium 10 9 1
Fidelity Long-Term Treasury Bond Index Fund
Investor 20 19 1
Premium 10 9 1
Fidelity Inflation-Protected Bond Index Fund
Investor 20 19 1
Premium 10 9 1
Institutional 7 6 1
Institutional Premium 5 5 -

ETF Previous Total Expenses (bp) New Total Expenses (bp) Savings (bp)
Fidelity MSCI Consumer Discretionary Index ETF (FDIS) 12 8.4 3.6
Fidelity MSCI Consumer Staples Index ETF (FSTA) 12 8.4 3.6
Fidelity MSCI Energy Index ETF (FENY) 12 8.4 3.6
Fidelity MSCI Financials Index ETF (FNCL) 12 8.4 3.6
Fidelity MSCI Health Care Index ETF (FHLC) 12 8.4 3.6
Fidelity MSCI Industrials Index ETF (FIDU) 12 8.4 3.6
Fidelity MSCI Information Technology Index ETF (FTEC) 12 8.4 3.6
Fidelity MSCI Materials Index ETF (FMAT) 12 8.4 3.6
Fidelity MSCI Telecommunications Index ETF (FCOM) 12 8.4 3.6
Fidelity MSCI Utilities Index ETF (FUTY) 12 8.4 3.6
Fidelity MSCI Real Estate Index ETF (FREL) 12 8.4 3.6

Fidelity's expense reductions follow an announcement earlier this month for a series of enhancements to its line-up of index mutual funds, which included launching three new equity funds, replacing the Spartan name with Fidelity, and expanding availability of its institutional share classes to investors on and off the Fidelity platform. 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*
*$200 million for Fidelity 500 Index Fund.

"Whether index funds, actively managed funds or managed products, 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 goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $5.4 trillion, including managed assets of $2.1 trillion as of May 31, 2016, we focus on meeting the unique needs of a diverse set of customers: helping more than 25 million people invest their own life savings, nearly 20,000 businesses manage employee benefit programs, as well as providing nearly 10,000 advisory firms with investment and technology solutions to invest their own clients' money. Privately held for nearly 70 years, Fidelity employs 45,000 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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