E-Trade has launched five no-commission, 0%-expense-ratio index mutual funds exclusively for its clients.
The Morgan Stanley-owned online brokerage's new funds, introduced this month and managed by Morgan Stanley Investment Management, include:
• E-Trade No Fee Large Cap Index Fund (ETLGX)
• E-Trade No Fee Total Market Index Fund (ETTOX)
• E-Trade No Fee International Index Fund (ETISX)
• E-Trade No Fee Municipal Bond Index Fund (ETMUX)
• E-Trade No Fee U.S. Bond Index Fund (ETBOX)
The announcement follows E-Trade’s move to eliminate trade commissions and early redemption fees for all online mutual fund trades, adding to its $0 online commission offering for U.S.-listed stocks, exchange-traded funds and options trades.
“This marks another chapter in E-Trade’s storied history of bringing innovative products and services to self-directed investors,” said Chad Turner, who heads Morgan Stanley Wealth Management Platforms.
E-Trade is one of three core client channels within Morgan Stanley Wealth Management, spanning advisor-led, workplace and retail investing and trading.
“With E-Trade fully integrated into our comprehensive wealth management offering, we are able to not only meet clients wherever they are in their financial journeys but can deliver the innovative investment solutions that clients value and help create and deepen relationships,” said Vince Lumia, who heads Morgan Stanley Wealth Management Client Segments.
“And the reality is, we are only beginning to unlock the power of what we can build and deliver to our clients through this critical channel," he added.
Shares of the E-Trade no-fee funds can be purchased only through a self-directed E-Trade account, with no minimum initial investment.
After buying shares of these funds, E-Trade clients can transfer the shares to and hold them within a Morgan Stanley Wealth Management account.
Credit: Diego M. Radzinschi/ALM
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