Fidelity’s New Service Charge Spells Trouble for ETFs and Asset Managers

Wednesday, 3 April 2024, 17:44

Fidelity Investments' support agreement introduces a new service charge that poses an ‘existential’ threat to some ETFs. Asset managers are in a dilemma whether to comply and share revenue collected through Fidelity's platform, potentially affecting the future of ETFs.
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Fidelity’s New Service Charge Spells Trouble for ETFs and Asset Managers

Fidelity's New Service Charge

Some asset managers face a tough decision concerning Fidelity Investments' support agreement and the associated service charge.

Existential Threat to ETFs

Asset managers may have to relinquish part of the revenue their exchange-traded funds generate through Fidelity's platform.

This move could impact the viability of certain ETFs in the market.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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