Fidelity's deal with BlackRock is limited in more ways than one. Customers are limited to 25 commission-free funds, while Fidelity hesitates to take the most important step: the introduction of proprietary funds.
The ETF industry is still in its adolescence, and there is plenty of room for a firm like Fidelity to make an impact. Schwab introduced commission-free funds for customers in 2009, and Pimco recently entered the ETF marketplace on the fixed-income side.
The most successful ETF issuers are able to step back and see where they can make an impact. Fidelity's reputation, loyal customer base, and dominance in the 401(k) space are a force to be reckoned with.
ETF investors, many of whom abandoned the sea of mutual funds for more transparent waters, have been slow to accept the type of actively managed ETFs that Rodger Lawson hinted at on his way out. Fidelity would be best served developing its own line of sector funds, based on its line of "Fidelity Select" mutual funds.Fidelity may be late in joining the ETF game, but the firm could easily become a major player. Fidelity must move quickly and efficiently, coloring offerings with the firm's identity.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV