Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I just noticed that Fidelity lowered its fee for transaction fee funds from $75 to $49.95. Anyone else notice that ? BCSIX shows a transaction fee of $49.95.
Yes -- here's the applicable part of the relevant footnote. It's still buy-only, too.
"Online Transaction Fees: $49.95 for most funds. Certain funds will have a transaction fee of $75. To identify any applicable transaction fees associated with the purchase of a given fund, please refer to the "Fees and Distributions" tab."
I do own BCSIX as NTF in my 401k self-directed brokerage (JPM Chase platform). I contacted them why they are not NTF at Fidelity and they basically indicated Fidelity is charging them too much.
Looks like Fidelity has created an intermediate tier now for some funds.
Hmmm...I can't afford a Lamborgini. I can't afford a Porsche either. I want someone, anyone to tell me he is dancing because he has to pay $50 instead of $75. I mean I need to personally know at least one person who's doing this so I can tell stories to my grandchildren.
It looks like most funds are at $49.95. I did a little spot checking - so far I can find only Vanguard that is getting stuck with the $75 TF. Families like Selected Shares are charged only $49.95.
(Selected Shares class D shares are quite cheap, and Selected Shares earned the wrath of Schwab by introducing lower cost D shares while keeping its S shares for NTF platforms. So it's an obvious candidate for higher transaction fees, just as one would expect Fidelity to target Vanguard.)
Reply to @VintageFreak: I'm doing this. I'd rather pay a $75 fee (and am delighted to pay "just" $50) to get into an institutional share class that will save me 0.25%/year, year after year. On a $10K investment, that now pays off in two years instead of three. (Additional purchases can be had at $5.)
Overall, I think this is a step in the right direction especially coupled with the fact that Fidelity is waiving the load on some previous load funds as well.
Comments
"Online Transaction Fees: $49.95 for most funds. Certain funds will have a transaction fee of $75. To identify any applicable transaction fees associated with the purchase of a given fund, please refer to the "Fees and Distributions" tab."
Looks like Fidelity has created an intermediate tier now for some funds.
(Selected Shares class D shares are quite cheap, and Selected Shares earned the wrath of Schwab by introducing lower cost D shares while keeping its S shares for NTF platforms. So it's an obvious candidate for higher transaction fees, just as one would expect Fidelity to target Vanguard.)
T. Rowe Price, another obvious candidate for the old $75 fee, gets the lower $49.95 fee also. Even Schwab's S&P 500 fund SWPPX (0.09% ER) gets the $49.95 rate. So do Bridgeway Blue Chip 35 (BRLIX), Northern US Treasury Index Fund (BTIAX), Federated Government Ultrashort Duration Fund (FGUSX), etc.
Basically, it seems that all the very cheap funds (that wouldn't be paying up for a lower TF) still get the $49.95 pricing, except for Vanguard.
I'm doing this. I'd rather pay a $75 fee (and am delighted to pay "just" $50) to get into an institutional share class that will save me 0.25%/year, year after year. On a $10K investment, that now pays off in two years instead of three. (Additional purchases can be had at $5.)