ETFs
Fidelity pushes for ETF listing and maintenance fees after threatening to charge investors if no deal is reached (FIXED) – Fidelity National Finl (NYSE:FNF)
June 5, 2024 12:26 a.m. | 2 minutes of reading
27% profits every 20 days?
This is Nic Chahine’s average with his options purchases. Do not sell calls or covered spreads… BUY options. Most traders don’t even have a 27% winning percentage when buying options. He has a win rate of 83%. Here’s how he does it.
Editor’s note: A previous version of the article mistakenly added a market ticker to Fidelity Investments. The article has been updated to reflect the correction.
Loyalty investments reportedly pressured ETF companies to pay for listing and maintaining their products on its platform, a move that stoked industry discontent.
What happened: Fidelity, a major player in the investment field, has already concluded agreements with nine specialized companies. This comes after the company warned them in March of potential fees for their ETF investors if they didn’t reach a deal, Bloomberg reported Tuesday. The company is currently in discussions with other asset managers for similar revenue sharing agreements.
While maintenance fees are nothing new for mutual fund companies, they are less common for ETFs. The move could lead to increased spending in a market known for its cost-conscious nature.
Under the proposed deals, Fidelity would take 15% of the fund’s total revenue. The company also suggested imposing fees of up to $100 on investors who buy a fund from a company that doesn’t agree to the deal.
Fidelity’s move is seen as an attempt to generate new revenue in the sector, amid a shift from mutual funds to generally cheaper and more tax-efficient ETFs. Critics say it could stifle innovation in the ETF space and make it harder for new companies to operate.
Fidelity has not yet responded to emailed queries Benzinga.
Why is this important: This decision by Fidelity is significant in the context of its recent activities in the ETF space. In March, Fidelity added staking on its proposed Ethereum ETF applicationaimed at allowing ETF investors to earn additional income through staking rewards.
In May, the company filed an amended S-1 application for its spot Ether ETF with the SECa move that could mark a significant milestone in the widespread adoption of Ethereum.
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
27% profits every 20 days?
This is Nic Chahine’s average with his options purchases. Do not sell calls or covered spreads… BUY options. Most traders don’t even have a 27% winning percentage when buying options. He has a win rate of 83%. Here’s how he does it.
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