E*Trade plans zero-cost mutual funds exclusively for platform customers
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E*Trade, the brokerage platform owned by Morgan Stanley (NYSE:MS), disclosed plans to launch five zero-cost mutual funds, available exclusively to its customers, according to a regulatory filing released on Tuesday.
The planned funds feature the E*TRADE No Fee Large Cap Index Fund, the E*TRADE No Fee Total Market Index Fund, the E*TRADE No Fee International Index Fund, the E*TRADE No Fee Municipal Bond Index Fund and the E*TRADE No Fee U.S. Bond Index Fund, the SEC filing said.
Although firms don’t profit directly from offering zero-expense-ratio funds, the move could attract investors who may become paying clients for their other services.
In 2018, Fidelity Investments rolled out zero-fee index funds in 2018 that only brokerage clients could buy.