qandaQ: Fidelity has recently opened a new U.S. REIT fund (FREL) that has a much lower expense ratio than the commission-free REIT ETF from Ishares (IRY). Do you intend to replace the present ishares fund?

Q: Fidelity has recently opened a new U.S. REIT fund (FREL) that has a much lower expense ratio than the commission-free REIT ETF from Ishares (IRY). Do you intend to replace the present ishares fund?

A:  Yes, I expect to make a change but the Fidelity REIT ETF is a very small fund and I think it is prudent to wait until it grows to at least a couple hundred million dollars under management.  Right now the Fidelity REIT only has $19 million under management compared to 6 billion dollars in the Ishares REIT fund.