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BOSTON, March 2, 2004 - Fidelity Investments® announced today that effective March 1, 2004 its customers can now trade the Fidelity Nasdaq Composite® Index Tracking Stock (ONEQ) commission free until August 31, 2004. Qualifying trades must be online market and limit orders only, up to 5,000 shares.
"The NASDAQ Composite Index is one of the most widely quoted and recognized market indexes in the world and now Fidelity customers can gain broad exposure to the index in a commission free trade," said John F. Sweeney, senior vice president, Fidelity Personal Investments. "The ONEQ is the only exchange-traded fund (ETF) in the marketplace that tracks the NASDAQ Composite Index providing customers exposure to small-, mid-, and large-cap stocks."
The online commission free trading of ONEQ is available through a Fidelity retail brokerage account. Customers trading ONEQ shares through a phone representative or Fidelity's Automated Service Telephone will be subject to standard commission pricing. In 2003, more than 90 percent of all equity trades -- in Fidelity retail accounts -- were made online. For Fidelity's retail brokerage account customers this would be a savings of between $8 and $32.95 per trade depending on commission schedule.
"As both a manager of an exchange-traded fund and one of the world's largest brokerage firms, Fidelity is uniquely positioned to offer commission free trades in ONEQ," Sweeney added.
Fidelity's first exchange-traded fund, Fidelity Nasdaq Composite Index Tracking Stock (ONEQ), seeks to provide investment returns that closely correspond to the price and yield performance of the NASDAQ Composite Index. Differences between the index and the ETFs portfolio, as well as costs and expenses, may cause differences in performance. The NASDAQ Composite Index is a widely recognized, unmanaged market capitalization-weighted index that is designed to represent the performance of the more than 3,000 securities listed on The NASDAQ Stock Market®. It is important to note that the ETF is non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund.
According to the Investment Company Institute, in December 2003, ETFs had total assets of more than $150 billion compared to $7.4 trillion for mutual funds. Assets in ETFs have more than quadrupled since the end of 1999 from $33.9 billion to $150.9 billion at the end of 2003. The number of funds available has swelled from 30 at the end of 1999 to 119 at the end of 2003.
Like a traditional mutual fund, an ETF is a basket of stocks that allows an investor to buy an interest in a portfolio of securities. Unlike, traditional mutual funds, however, ETF shares can be bought and sold at intra-day market prices on an exchange, can be bought on margin or by limit order, and may be sold short2 as permitted by an investor's broker, subject to exchange rules. Some ETFs track a broad market index, while others target a specific sector. When buying shares in the secondary market, there are no investment minimums (i.e., an investor can purchase a single share).
Investors should be aware that ETF shares are not individually redeemable from the fund, may trade at a discount to NAV and that the ETF is subject to the market fluctuations of its underlying investments.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.8 trillion, including managed assets of $1,004.7 billion as of January 31, 2004. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals
and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.Fidelity.com.
Please consider the fund's investment objectives, risks, charges and expenses before investing. For this and other information on any fund available through Fidelity, call or write to Fidelity or visit fidelity.com for a free prospectus. Read it carefully before you invest or send money.
1. Offer applies to online market or limit order ONEQ transactions, up to 5,000 shares per transaction, placed between 3/1/04 and 8/31/04. Offer does not apply to directed trades, pre- or after- market orders. ONEQ is not a suitable investment for all investors and carries significant risks. Fidelity is not recommending this or any other security through this offer. Please read the Product Description before trading ONEQ commission-free through your Fidelity Brokerage Account. Individuals must determine whether a particular security or trading strategy is in line with their risk tolerance and investment objectives. ONEQ should be considered as part of an overall investment strategy. The ETF is managed by Fidelity Management and Research Co. NASDAQ is the listing market; licensor of the index and provides marketing services for the ETF.
Non-U.S. residents, and persons working for another NYSE member, financial institution, news or financial information media, or other broker or dealer in securities, commodities, or money instruments as defined by NYSE Rule 350 are ineligible. Employees of Fidelity, its affiliates, and members of their immediate families and households are not eligible for this offer.
2. In order to short sell at Fidelity, you must have a margin account. Short selling and margin trading entail greater risk, including but not limited to risk of loss and incurrence of margin interest debt, and are not suitable for all investors. Please assess your financial circumstances and risk tolerance prior to short selling or trading on margin. Margin trading is extended by National Financial Services, member NYSE/SIPC, a Fidelity Investments company.
NASDAQ,® NASDAQ Composite,®and NASDAQ Composite Index® are registered trademarks of The Nasdaq Stock Market, Inc. (which with its Affiliates are the Corporations.) and are licensed for use by Fidelity. The product has not been passed on by the Corporations as to its legality or suitability. The product is not issued, endorsed, or sold by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT
Consistent with its investment objective, the ETF may hire or terminate money managers at any time without prior notification.
Fidelity Distributors Corporation, 82 Devonshire Street, Boston, MA 02109
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