Fidelity turns up heat on rivals with cost cuts on index funds

Fidelity Worldwide Investment has cut the price of its index tracker range, putting pressure on rivals who now charge more than double the price on some products.

Fidelity has moved to undercut competitors further in the passive space, reducing the price of six of its seven-strong range of index trackers - many of which were already cheaper than rivals' products. The group launched its UK, US, Japan, Europe ex UK, Pacific ex Japan, Emerging Markets and World trackers earlier this year in a surprise move, challenging established giants including BlackRock and Vanguard on price. The latest price cuts across the range have seen it trim between 1bps and 7bps off the cost of its products. For example, Fidelity's UK tracker has seen its price cut ...