New products and changes introduced over the last week include lower prices from Fidelity Investments on 27 of its mutual funds and ETFs; two new ETFs from State Street Global Advisors and one each from Guggenheim, AccuShares and Deutsche Asset Management.
In addition, State Street made changes to its financial sector ETF; Lindner Capital Advisors announced a new 401(k) fee structure; and Wealthbox CRM and Advizr announced an integration.
Here are the latest developments of interest to advisors:
1) Fidelity Cuts Prices on 27 Funds, ETFs
Fidelity Investments lowered total expenses on 27 of its equity and bond index mutual funds and ETFs, effective July 1. The average expenses across Fidelity’s index fund lineup will be 10.2 basis points (0.102%), down from 11.6 basis points.
(Related on ThinkAdvisor: Fidelity Fires Latest Shot in Index Fund Fee War)
A total of 16 index mutual funds and 11 index ETFs are affected by the change and savings per fund range from one-half to four basis points, with most somewhere falling between the two.
2) State Street Global Advisors Adds 2 ETFs, Makes Changes to Sector Fund
XTH tracks the performance of the S&P Technology Hardware Select Industry Index, comprised of companies in technology hardware, storage and peripherals, electronic equipment and instruments, and electronic components subindustry.
XWEB tracks the performance of the S&P Internet Select Industry Index, which covers retail internet companies as well as internet software and services companies.
In addition, State Street announced it will change its Financial Select Sector SPDR Fund (XLF) to correspond with modifications to the Global Industry Classification Standards (GICS) by S&P Dow Jones Indices and MSCI. Since the GICS changes divide the current financial sector into two sectors — financial services and real estate — the Financial Sector Index will be reconstituted to exclude real estate securities except mortgage REITS, effective September 16, 2016.
In advance of the reconstitution, XLF will obtain real estate exposure from shares of the Real Estate Select Sector SPDR Fund (XLRE), and the operating fees and expenses of XLRE are waived until September 16. Once changes to the Financial Sector Index are effective, XLF intends to issue a special dividend to its shareholders, comprised of shares of XLRE.
3) Guggenheim Adds Equal Weight ETF
Guggenheim Investments introduced the Guggenheim S&P 100 Equal Weight ETF (OEW), which provides equal weight access to 100 of the largest and most stable companies in the S&P 500.
4) AccuShares Adds Oil ETF
AccuShares launched a bull and bear ETF designed to capture opportunities in crude oil pricing and market volatility.
The fund has two share classes: the AccuShares S&P GSCI Crude Oil Excess Up shares (OILU) and the AccuShares S&P GSCI Crude Oil Excess Return Down Shares (OILD). They are designed to address known shortcomings with existing ETPs in the oil market. In addition, the ETF has the lowest annual expense ratio of any unleveraged crude oil ETP, at 0.29%.
5) Deutsche Asset Management Adds Comprehensive Factor ETF
Deutsche Asset Management announced the addition of the Deutsche X-trackers Russell 2000 Comprehensive Factor ETF (DESC).
DESC tracks the Russell 2000 Comprehensive Factor Index comprised of companies that have demonstrated relatively strong exposure to targeted investment style factors: value, momentum, quality, low volatility and size. It has a net expense ratio of 0.30%.
6) Lindner Capital Advisors Announces New 401(k) Fee Structure
Lindner Capital Advisors joins the growing list of firms that are cutting fees following adoption of the DOL fiduciary rule. Effective June 1 investment management fees for new 401(k) accounts are 20 basis points. Plan sponsors now pay a minimum $1,000 fee and maximum $20,000, which applies to plans with more than $10,000,000 in assets.
7) Wealthbox and Advizr Announce Integration
Wealthbox CRM, a web-and-mobile CRM service for financial advisors, and financial planning software provider Advizr announced an integration to allow the exchange of client data between the applications.
Financial advisors using Wealthbox and Advizr technologies will have single sign-on capability, and users can choose to send client data from Wealthbox CRM to Advizr on a case-by-case basis or import all of their existing client data with the click of a button.