Fidelity cuts fees on college savings plans

Company also launching new college savings portfolios that combine active, passive investments.
OCT 08, 2019
By  Bloomberg
Fidelity Investments cut fees for the majority of its college savings plans as it launched portfolios that combine active and passive money management. The lower fees on 15 of 22 plans will save investors more than $4 million a year, Fidelity said Tuesday in a statement. The company, which manages $25 billion of so-called 529 savings plans sponsored by the states of Arizona, Delaware, Massachusetts and New Hampshire, also said that last Thursday, it launched eight new college saving portfolios that combine active and index investments. The latest move is part of ongoing fee changes at closely held Fidelity, which has $2.8 trillion under management. In the past several years, the company has joined the asset management price wars with Charles Schwab Corp., Vanguard Group and BlackRock Inc., all of whom have reduced fees on index mutual funds and ETFs. [Recommended video: What drove Finra's new 529 share class initiative?] Fidelity, which built an empire on the prowess of its stock pickers, startled the industry last year by offering several zero-fee index mutual funds and has since expanded its slate of commission-free ETFs, giving investors more options with smart beta and active products. [More: 529 savings plans are not just for college anymore]

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.