E*Trade to Launch Zero-Cost Mutual Funds for Platform Customers

In a recent SEC filing, it was revealed that firms do not directly profit from offering zero-expense-ratio funds. Despite this, the decision to provide these funds can be attractive to investors, potentially leading them to invest more actively. Zero-expense-ratio funds have been gaining popularity in the financial world, as they offer investors the opportunity to invest without incurring any fees. This can be a significant benefit for those looking to maximize their returns without being held back by high fees. By offering these funds, firms are able to appeal to a wider range of investors who are looking for low-cost investment options. This move not only benefits investors but also allows firms to expand their client base and build trust with potential investors. With the growing popularity of zero-expense-ratio funds, it will be interesting to see how firms continue to adapt to meet the changing needs of investors in the future.