Fidelity ETF expands $100 service fee to 120+ funds starting June 1

Fidelity Investments expanded its $100 ETF service fee to more than 120 funds starting June 1, growing the list from roughly 27 funds subject to the charge. The fee applies to exchange-traded funds from issuers that haven’t negotiated a revenue-sharing agreement with the brokerage and represents a significant shift in how Fidelity monetizes its ETF platform.

Quick Facts

• Fee amount: 5% of trade value, capped at $100 per purchase
• Effective date: June 1, 2026
• Original list: Roughly 27 ETFs subject to the fee
• Expanded list: More than 120 ETFs now charged the fee

The fee targets ETF issuers that do not pay Fidelity a direct, asset-based fee to support platform availability. Roundhill is the single largest issuer affected, with more than 40 funds on the list, while Kurv contributes 12 funds, including yield premium strategy ETFs tied to major tech stocks.

The expansion has drawn criticism from industry figures. Investor and fund manager Meb Faber called the fee structure “gross,” and critics have described it as a “pay to play” model that forces smaller fund managers to either negotiate with Fidelity or pass the cost to their investors. The structure creates pressure on issuers to agree to Fidelity’s revenue-sharing terms or see their products become less attractive to retail traders.

The vast majority of ETF trades at Fidelity remain commission-free. The $100 fee applies only to a narrow slice of funds from smaller, specialty issuers that haven’t reached a deal with the brokerage. Major providers like Vanguard, iShares, SPDR, and Invesco are unaffected. Fidelity continues to offer thousands of commission-free ETFs and remains the only broker offering 0% expense ratio index funds.

Sources

• MSN / The College Investor — Fidelity’s expansion from 27 to 120+ ETFs, June 1 effective date, fee structure, and industry reaction
• Yahoo Finance — Confirmation of June 1 start date and $100 fee on more than 120 ETFs
• ThinkAdvisor — About 140 additional ETFs subject to the fee effective June 1, 5% per purchase order capped at $100