E-Trade is just one of many trading platform options investors have to choose from after a number of fintech firms arose to challenge the traditional brokerages over the past few years. A Morgan Stanley spokesperson declined to comment.
The planned funds include the E*TRADE No Fee Large Cap Index Fund, the E*TRADE No Fee Total Market Index Fund, the E*TRADE No Fee International Index Fund, the E*TRADE No Fee Municipal Bond Index Fund and the E*TRADE No Fee U.S. Bond Index Fund.
Fidelity’s line-up of no-fee funds has found an audience, with the Fidelity Zero Total Market Index Fund now commanding nearly $26 billion in assets. While it’s unclear if the free funds have managed to bring in new clients to the brokerage platform, that kind of growth is impressive in the indexing business, according to Morningstar Research Services.
“Loss leaders induce people to come, stay, and be up- or cross-sold,” said Jeffrey Ptak, chief ratings officer at Morningstar Research Services.
Credit: Bloomberg
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