WSJ: Fidelity's ETF Fee Spurs a Backlash
But the Boston money manager is tacking on an additional fee of $7.95 a trade to investors who sell the ETFs within 30 days and to financial advisers who sell within 60 days.
Advisers also complained that Fidelity replaced 10 of the commission-free iShares ETFs on its previous menu. Nine of the new ETFs have lower trading volumes, suggesting they are less popular with investors.
"They made their program much worse, and made it seem like they made it better," said Matthew Tuttle, a financial adviser in Stamford, Conn. Mr. Tuttle emailed a representative at Fidelity on Thursday to tell the company he would withdraw all $115 million of his client funds in iShares ETFs if it didn't reverse its redemption fee.