Comments on: Psst – iShares for Sale; Ned, You Listening? http://investwithanedge.com/psst-ishares-for-sale Actionable Ideas for Your ETFs, Funds, & Stocks Thu, 09 Feb 2012 20:57:46 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Ron Rowland http://investwithanedge.com/psst-ishares-for-sale/comment-page-1#comment-1502 Ron Rowland Sun, 22 Mar 2009 14:35:34 +0000 http://investwithanedge.com/?p=3734#comment-1502 I am another one who believes that this makes the utmost sense for Fidelity. When Fidelity removed hourly pricing on the Select funds and added their 31-day holding requirement to every fund except money market funds, I thought it was in preparation for rolling out their own line of ETFs, but that never happened. Fidelity is probably concerned that having an ETF product line will cannibalize their exisitng mutual fund lineup, and ETFs command a lower management fee. Guess what, their mutual funds are going to lose assets to ETFs anyway - so isn't it better that the assets move to Fidelity owned ETFs instead of someone else's (like Vanguard. State Street, Invesco, and others). Besides, if they keep the iShares name, which they should since it is the most recognized brand in the business, it may take a few years for many of their exisitng mutual fund shareholders to realize that they are owned by Fidelity. This is one of those deals that will come back to haunt them in later years if they let it slip away. I am another one who believes that this makes the utmost sense for Fidelity. When Fidelity removed hourly pricing on the Select funds and added their 31-day holding requirement to every fund except money market funds, I thought it was in preparation for rolling out their own line of ETFs, but that never happened.

Fidelity is probably concerned that having an ETF product line will cannibalize their exisitng mutual fund lineup, and ETFs command a lower management fee.

Guess what, their mutual funds are going to lose assets to ETFs anyway – so isn’t it better that the assets move to Fidelity owned ETFs instead of someone else’s (like Vanguard. State Street, Invesco, and others).

Besides, if they keep the iShares name, which they should since it is the most recognized brand in the business, it may take a few years for many of their exisitng mutual fund shareholders to realize that they are owned by Fidelity.

This is one of those deals that will come back to haunt them in later years if they let it slip away.

]]>