Fidelity® Expands Index Fund Lineup
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E-mailLaunches Fidelity Short-Term Bond Index Fund;
Adds Share Classes to Existing Treasury Bond Index Funds
BOSTON--(BUSINESS WIRE)-- Fidelity Investments®, one of the industry’s largest, most experienced providers of low-cost active and index investment products, today announced the launch of Fidelity Short-Term Bond Index Fund, a new short-duration bond fund. Fidelity also introduced two lower priced share classes - Institutional and Institutional Premium classes - to three existing Fidelity bond index funds: Fidelity Long-Term Treasury Bond Index Fund, Fidelity Intermediate Treasury Bond Index Fund and Fidelity Short-Term Treasury Bond Index Fund.
“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 Penzone, head of investment product, Fidelity Investments. “With this new fund and the addition of these two lower priced share classes, we are reinforcing our message to shareholders that we are firmly committed to providing them with high‐quality index funds that are among the lowest cost in the market.”
A recent Morningstar research paper1 headlined, “Partnering With Passive Fund Sponsors That Have Your Back” highlighted Fidelity as an index fund manager that aligns its own economic interests with those of its funds’ shareholders.
Fidelity Short-Term Bond Index Fund seeks a high level of current income consistent with preservation of capital by attempting to replicate the performance of the Bloomberg Barclays U.S. 1 – 5 Year Government/Credit Bond Index2. It normally invests at least 80% of assets in securities included in the index. Fidelity Short-Term Bond Index offers four classes: Investor, Premium, Institutional and Institutional Premium.
Brandon Bettencourt and Jay Small, who manage Fidelity’s existing bond index funds, will also co-manage Fidelity Short-Term Bond Index Fund.
With the launch of Fidelity Short-Term Bond Index Fund, Fidelity now offers 22 competitively priced stock and bond index mutual funds.
Fidelity Bond Index Funds:
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Fund |
Share Class |
Ticker |
Net Expense(bp) |
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| Fidelity U.S. Bond Index Fund | Investor | FBIDX | 14 | |||||||||
| Premium | FSITX | 4.5 | ||||||||||
| Institutional | FXSTX | 3.5 | ||||||||||
| Institutional Premium | FXNAX | 2.5 | ||||||||||
| Fidelity Short-Term Bond Index Fund | New | Investor | FNSJX | 14 | ||||||||
| New | Premium | FNSKX | 6 | |||||||||
| New | Institutional | FNSLX | 4 | |||||||||
| New | Institutional Premium | FNSOX | 3 | |||||||||
| Fidelity Inflation-Protected Bond Index Fund | Investor | FSIQX | 19 | |||||||||
| Premium | FSIYX | 9 | ||||||||||
| Institutional | FIPBX | 6 | ||||||||||
| Institutional Premium | FIPDX | 5 | ||||||||||
| Fidelity Short-Term Treasury Index Fund | Investor | FSBIX | 16 | |||||||||
| Premium | FSBAX | 6 | ||||||||||
| New | Institutional | FBENX | 4 | |||||||||
| New | Institutional Premium | FUMBX | 3 | |||||||||
| Fidelity Intermediate Term Treasury Index Fund | Investor | FIBIX | 16 | |||||||||
| Premium | FIBAX | 6 | ||||||||||
| New | Institutional | FUPDX | 4 | |||||||||
| New | Institutional Premium | FUAMX | 3 | |||||||||
| Fidelity Long-Term Treasury Index Fund | Investor | FLBIX | 16 | |||||||||
| Premium | FLBAX | 6 | ||||||||||
| New | Institutional | FNAMX | 4 | |||||||||
| New | Institutional Premium | FNBGX | 3 | |||||||||
The investment minimums for each of Fidelity’s four index mutual fund share classes are:
- Investor: $2,500
- Premium: $10,000
- Institutional: $5 million
- Institutional Premium: $100 million
About Fidelity InvestmentsFidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $6.5 trillion, including managed assets of $2.4 trillion as of September 30, 2017, we focus on meeting the unique needs of a diverse set of customers: helping more than 26 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients’ money. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.
Before investing, consider the investment objectives, risks, charges, and expenses of the fund or annuity and its investment options. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Fidelity Brokerage Services LLC, Member NYSE, SIPC900 Salem Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc.,500 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,200 Seaport Boulevard, Boston, MA 02110
822061.1.0
© 2017 FMR LLC. All rights reserved.
1 Source: “Partnering With Passive Fund Sponsors That Have Your Back” by Adam McCullough, CFA. © 2017 Morningstar, Inc. All Rights Reserved.
2 The Bloomberg Barclays U.S. 1 – 5 Year Government/Credit Bond Index is a market value-weighted index of fixed-rate investment-grade debt securities with maturities from one to five years from the U.S. Treasury (60%), U.S. Government-Related (13%), and U.S. Corporate (27%) Indexes.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171025006001/en/
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Corporate
Communications, 617-563-5800
[email protected]
or
Charlie
Keller, 617-563-2302
[email protected]
Source: Fidelity Investments
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