Fidelity to Impose $100 Purchase Fee on Over 120 ETFs

Fidelity Investments is implementing a significant fee structure change affecting more than 120 exchange-traded funds (ETFs) beginning June 1. The brokerage will levy a $100 charge on purchase trades for funds whose issuers have declined to pay an asset-based fee to the platform to cover trading costs. The policy is designed to shift the cost of trading infrastructure from Fidelity to the ETF issuers. While many of the affected funds are small-cap or niche products, several high-profile funds with over $1 billion in assets under management (AUM) are included in the list. Roundhill is the most heavily impacted issuer, with over 40 of its funds subject to the fee. Notable examples include the Roundhill Magnificent Seven ETF (MAGS), the Roundhill Generative AI & Technology ETF (CHAT), and the Dan Ives Wedbush AI Revolution ETF (IVES). For retail investors, the fee creates a substantial barrier to entry, particularly for lower-priced shares. For instance, with MAGS trading around $66 per share, a single-share purchase would incur a fee exceeding the asset's value. Even a $5,000 transaction would represent a 2% upfront commission. This move may drive investors toward competing platforms that do not impose similar transaction fees. While the fee only applies to a limited number of funds, it signals a potential shift in how brokerages monetize their access to ETF issuers.