Fidelity Brings ETFs Into the Era of Free Investing

Fidelity's announcement of zero fee index funds has shocked the investment world, symbolizing a shift towards low-cost investment products. While largely symbolic, this move highlights the trend of money flowing to cheaper funds. Fidelity's strategy, seen as a PR success, positions them as a leader in the index fund market. The discussion also covers ETFs, securities lending, and the financial implications for Fidelity, emphasizing their strong financial position despite potential market downturns.

Discuss the role of marketing in Fidelity's decision to offer zero fee index funds.

What challenges might Fidelity face in the future despite the success of their zero fee index funds?