Fidelity Debuts Low-Cost Shares for Five Index Funds

Fidelity Investments introduced new shares of five of its Spartan equity index funds that have lower expenses than the funds’ other shares.

The new “Advantage” class shares have expense ratios of 0.07%, compared with 0.10% for the funds’ other shares, which are now called “Investor” shares.

Expenses for new shares of four of the funds — Fidelity Spartan 500 Index (FSMKX), Fidelity Spartan U.S. Equity Index (FUSEX), Fidelity Spartan Total Market Index (FSTMX), Fidelity Spartan Extended Market Index (FSEMX) — cannot be raised without shareholder approval. Fidelity said it would voluntarily cap expenses for Advantage shares of the fifth fund, Fidelity Spartan International Index (FSIIX), at 0.07%.