BOSTON Dec 11 Fidelity Investments, the
second-largest U.S. mutual fund company, on Tuesday slashed fees
by as much as one-third on eight of its index funds.
Boston-based Fidelity said the fee cuts on funds including
its Spartan 500 Index Fund, Spartan Total Market Index
Fund and Spartan U.S. Bond Index Fund, would
take effect on Jan. 1.
The move comes amid the growing popularity of lower-cost,
index-based mutual and exchange-traded funds. Competitors
including BlackRock and Charles Schwab have
announced fee cuts and new, low-fee index products over the past
The biggest cuts at Fidelity will be on the Spartan Small
Cap Index Fund, which will charge 0.3 percentage point
per year, down from 0.38 points, for its "investor" class of
shares and the Spartan Midcap Index Fund, which drops
to 0.24 points from 0.28 points. Other funds will receive
Fidelity also said it was lowering the required minimum
investment amounts on 22 of its index funds.