One of the biggest news items in the exchange trade products business this week was the debut of 10 sector ETFs from financial services giant Fidelity.
And part of the big story there is that Fidelity is now the low-cost leader when it comes to sector ETFs. Not only can Fidelity clients trade the firm’s 10 new ETFs commission-free, but the funds charge a paltry 0.12% per year in fees, which is even cheaper than the 0.14% charged by Vanguard on most of its sector funds. [Fidelity Sector Funds Could Alter ETF Landscape]
There are similarities between the Fidelity sector ETFs and established offerings from State Street Global Advisors and Vanguard.
In this slideshow, we highlight the average weight of the largest stock in the sector ETFs from all three providers and whether investors would have been better served with the SPDR ETF or the largest holding this year.
A couple of notes. First, telecom was excluded because there is not a true SPDR for that sector. Second, Amazon (AMZN) is not the largest stock in the SPDR discretionary ETF, but it is in the Vanguard and Fidelity equivalents, so we chose it as our measuring stick for that sector here.