Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "
Fidelity has teamed up with iShares®/BlackRock®, the leading ETF provider, to offer free online purchases of 65 commission-free iShares ETFs with broad and diverse asset classes. This commission-free ETF trade offer more than doubles our current commission-free lineup of iShares ETFs. In addition, we will continue to offer the ability to trade Fidelity's own ETF, the Fidelity® NASDAQ Composite Index® Tracking Stock Fund (ONEQ), commission-free. We encourage you to use Fidelity's broad research and guidance capabilities when deciding which ETFs might be best for your investment portfolio.
iShares® has done a great job creating 10 building-block, iShares Core ETFs that most investors can use to build a strong portfolio with traditional equity and bond funds. Considering our vast customer base and their needs, we felt it was important to also offer the ability to expand on these products with different asset classes, such as real estate, commodities, and other strategic ETFs, like dividend-producing ETFs and minimum volatility funds.
ETFs offer flexibility because you can trade them throughout the day, plus you have the ability to set stop and limit orders, as well as sell a security short. ETFs also allow you to invest in a slice of the market, since many ETFs track narrow market indexes. They may also be tax-efficient because they do not sell shares to meet redemptions and do not trade frequently, so year-end capital gains distributions may tend to be lower.
Yes, if you sell a commission-free ETF within 30 days of purchase, you will be charged a short-term trading fee equal to a regular trade ($7.95). Even if you are charged this short-term trading fee, because you paid no commission on the buy, you end up being charged less than a regular round-trip trade ($15.90). On FAST®, Fidelity's automated phone system, the short-term trading fee is $12.95. However, we are offering a promotional period, between 03/13/2013 and 09/30/2013, where no short-term trading fees will be charged.
Shares held for 30 days or longer are not subject to the trading fee. All shares purchased on or prior to September 30 are immediately considered long-term, even if they haven't been held for 30 days. If you have multiple lots that were acquired on different dates, the oldest shares will be depleted first, even if you've elected other shares to deplete for tax purposes.
Other important rules to note:
No, the offer does not include leveraged or inverse ETFs.
No, expense ratios are the same at Fidelity as at any other firm. Expense ratios vary by ETF, but the 65 iShares® ETFs have an average expense ratio of .34%, compared to an industry average of .61%. The 10 iShares® Core ETFs have an average expense ratio of only .125%. It is easy to compare the expense ratios of any ETFs in Fidelity's ETF Center.
To be commission-free, the 65 iShares® ETFs must be traded online at Fidelity.com, using Active Trader Pro® tools, Wealth-Lab Pro®, or Fidelity Mobile® (iPhone®/iPod Touch®, iPad®, and AndroidTM apps). The trades can be buy or sell orders. After September 30, 2013, a short-term trading fee of $7.95 will be charged if a customer sells the ETF within 30 days of purchase. Due to the nature of the relationship, all iShares ETFs are not margin eligible for 30 days from settlement, similar to mutual funds. For margin customers, positions will automatically become margin eligible in their account after 30 days.
We have an industry-leading ETF Research Center that offers:
Our ETF Screener allows you to search for ETFs by sponsor, sector, region, style, capitalization, performance, Morningstar rating, and more. The tool does not make recommendations, but supplies results based on published criteria about each ETF. You can use a variety of different views and sort results in the way that is most useful to you.
Our ETF Portfolio Builder can help you easily build a customized portfolio of ETFs. The tool allows you to build a portfolio and adjust the weightings of your holdings to compare to a broad market index or to analyze them by asset class, style, or sector. You can also save, print, or trade the ETF portfolio through our basket trading capability.
No, due to the nature of the relationship with BlackRock®, Fidelity receives compensation for marketing of iShares. As a result, all iShares<sup>®</sup> ETFs cannot be margined for 30 days, similar to the handling of the new purchase of mutual funds. Shares of iShares ETFs will automatically journal to margin after 30 days from settlement. Investors choosing to buy on margin might want to consider selecting other non-iShares ETFs that have a similar objective to the iShares ETFs.
If you would like to buy ETFs on margin, you can use our ETF Screener to help you locate other products that may be marginable.
If the order is entered in a margin account, the security will not be marginable for 30 days from settlement and your order will be placed in the cash side of your account. After 30 days, the shares will automatically journal to your margin account. Margin buying power and cash available will be adjusted when the position is marginable. Therefore, all purchases of iShares® ETFs will require 100% of the purchase amount on settlement date.
Yes, you are able to use your margin borrowing power to purchase marginable securities, withdraw cash like a loan against your account, or use that borrowed money to purchase nonmarginable securities (subject to certain limits). However, purchasing shares of an iShares® ETF in this manner will not generate any additional margin borrowing ability until the shares have been owned for 30 days.
No, unfortunately there is no exception to the margin rule.
For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive, long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Additional information about the sources, amounts, and terms of compensation is described in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.