Fidelity Investments launched a new short-term bond index fund and two lower-priced institutional share classes for three of its existing bond index funds.
"Fidelity is committed to providing a choice of low-cost index options, and we continue to build out that offering to meet investors' needs, "said Colby, head of investment products for Fidelity, in a statement.
The Fidelity Short-Term Bond Index Fund seeks to provide investors with a high level of current income along with capital preservation; its benchmark is the Bloomberg Barclays U.S. 1–5 Year Government/Credit Bond Index. The firm expects to invest at least 80% of the new fund's assets in securities included in the index.
It will offer the fund with four share classes: investor (with fees of 14 basis points), premium (6 basis points), institutional (4 basis points) and institutional premium (3 basis points) — the last two of which are the firm's newest share classes.
