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Fidelity Rolls Out New Bond Fund and 2 Lower-Priced Share Classes

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Fidelity Investments launched a new short-term bond index fund and two lower-priced institutional share classes for three of its existing bond index funds.

“Fidelity is committed to providing a choice of low-cost index options, and we continue to build out that offering to meet investors’ needs, “said Colby, head of investment products for Fidelity, in a statement.

The Fidelity Short-Term Bond Index Fund seeks to provide investors with a high level of current income along with capital preservation; its benchmark is the Bloomberg Barclays U.S. 1–5 Year Government/Credit Bond Index. The firm expects to invest at least 80% of the new fund’s assets in securities included in the index.

It will offer the fund with four share classes: investor (with fees of 14 basis points), premium (6 basis points), institutional (4 basis points) and institutional premium (3 basis points) — the last two of which are the firm’s newest share classes.

Existing funds now being offered in the two new institutional share classes are the Fidelity Short-Term Treasury Index Fund, Fidelity Intermediate Term Treasury Index Fund and Fidelity Intermediate Term Treasury Index Fund.

Brandon Bettencourt and Jay Small, who manage Fidelity’s existing bond index funds, will co-manage the new short-term bond index fund. 

With the latest fund, Fidelity says it offers 22 “competitively priced” stock and bond index mutual funds. 

— Check out Making the Case for Strategic Beta as Fees Plunge on ThinkAdvisor.


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