Fidelity Challenges Vanguard on Mutual-Fund Fees

Better known for its actively managed funds, Fidelity wants to be known as the low-cost provider of index funds.

When it comes to index funds, Fidelity doesn’t want to play second fiddle to Vanguard anymore. The Boston-based fund firm, which is better known for its actively managed funds, recently cut fees on 27 of its index mutual funds and exchange-traded funds. Now, Fidelity charges less for some of its index funds than Vanguard, the de facto king of indexing, does for its products. “Fidelity wants to be known as the low-cost provider,” says Katie Rushkewicz Reichart, a Morningstar analyst.

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.