If You Own One of These ETFs, Fidelity Is About to Charge You $100 to Trade It

Roundhill is the astir impacted issuer. More than 40 of its ETFs volition beryllium taxable to the fee. The Roundhill Magnificent Seven ETF (NYSEMKT: MAGS), the Roundhill Generative AI & Technology ETF (NYSEMKT: CHAT), and the Dan Ives Wedbush AI Revolution ETF (NYSEMKT: IVES) are funds with much than $1 cardinal successful assets nether absorption (AUM) that volition beryllium charged the fee.

Even though this interest lone applies to conscionable implicit 100 mostly smaller ETFs, it's the benignant of enactment that instantly makes Vanguard look much attractive.

While trades are escaped for investors connected galore platforms, they inactive outgo wealth for the brokerage platforms. Many ETF issuers subsidize the interest themselves truthful that the funds stay accessible connected the platform.

Some smaller issuers don't wage this fee, and it tin beryllium costly to brokerages similar Fidelity. Now, Fidelity is fundamentally telling issuers to subsidize the fee, oregon other investors volition beryllium charged each clip they acquisition shares. Fidelity isn't threatening to footwear these issuers' funds disconnected the level (yet). But it's fundamentally telling them to play ball, oregon they volition marque investing successful their ETFs little attractive.

Unfortunately, it's not the issuers who volition endure immediately. Anybody who wants to bargain shares of the affected ETFs volition wage the price.

The afloat database of ETFs that volition beryllium taxable to the $100 interest tin beryllium recovered here. The large ETFs impacted are listed below.

Data source: Fidelity.