Continues to Lead the Industry in Providing the Best Value in Index Fund
Investing for Individual Mutual Fund Investors
NEW YORK, Sept. 7 /PRNewswire-FirstCall/ -- E*TRADE FINANCIAL Corporation
(NYSE: ET) today announced that E*TRADE Asset Management further reduced the
expenses of its S&P 500 and International Index Funds to nine basis points,
continuing its commitment to provide individual investors with the lowest cost
stock index mutual fund investing solutions available. As a result of these
reductions, the fees on these funds are now as much as 88% below industry
averages. In addition, investors are able to take advantage of these lower
expenses with a minimum fund balance of only $5,000 -- customers pay no loads
and no transaction fees to purchase shares of the E*TRADE Funds.(1)
"Investors understand the importance of low expense ratios to fund
performance, particularly when it comes to index funds," said Lou Klobuchar,
Chief Brokerage Officer and President, E*TRADE Securities LLC. "Reducing our
expense ratios to the lowest in the industry, at nine basis points, reaffirms
our commitment to deliver value to both current and prospective customers."
The E*TRADE Index Funds use an indexed portfolio management strategy in an
attempt to match the performance (before fees and expenses) of the underlying
indexes they are designed to track. E*TRADE Asset Management reduced the
expense ratios of its proprietary stock index funds to create the lowest
expense ratios in the industry.
E*TRADE Index Funds
Expense Ratios(2) Industry Average(3)
S&P 500 0.09% 0.38% (ET = 76% less
than the industry average)
International 0.09% 0.73% (ET = 88% less
than the industry average)
Russell 2000 0.26% 0.78% (ET = 67% less
than the industry average)
E*TRADE FINANCIAL Mutual Fund Center
The E*TRADE FINANCIAL Mutual Fund Center located at http://www.etrade.com/funds
provides investors with a convenient way to invest in mutual funds, offering
nearly 6,000 funds, including many from well-known fund families and hundreds
with no loads or transaction fees.(4) The Mutual Fund Center features
automatic investment plans and research tools -- including the All-Star Funds
List -- to help customers make educated investment decisions.
Customers who invest in mutual funds through E*TRADE Securities are
eligible to take advantage of the first and only 12b-1 Mutual Fund Fee Rebate
Program(5) -- a program that rebates 50 percent of the fees paid to brokerages
by many mutual funds to cover promotion, marketing and distribution expenses.
Rebates are paid semiannually and are automatically credited to the customer's
E*TRADE Securities account.
To learn more about E*TRADE Securities' products, services and investment
solutions for active traders and serious investors, visit
http://www.etrade.com/funds.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provide financial services
including brokerage, banking and lending for retail, corporate and
institutional customers. Securities products and services are offered by
E*TRADE Securities LLC (Member NASD/SIPC). Bank and lending products and
services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or
its subsidiaries.
PLEASE READ THE IMPORTANT DISCLOSURE BELOW
You should consider the investment objectives, risks, charges and expenses
of a mutual fund carefully before investing. The fund's prospectus contains
this and other important information. For a current prospectus, please visit
http://www.etrade.com/mutualfunds. Read the prospectus carefully before investing.
(1) A 1% redemption fee applies to redemptions made on E*TRADE Index Funds
within the first four months of purchase.
(2) For important information and details about the lowest cost E*TRADE
Index Funds, please visit http://www.etrade.com/funds for an explanation of
the methodology used, time periods covered and other criteria that you
should consider prior to making an investment decision. The E*TRADE
Index Funds had the lowest effective expenses because their expenses
have been contractually limited. The expenses of the E*TRADE Index
Funds prior to the imposition of the contractual limits are, in fact,
higher. Lowest mutual fund expense data provided by Lipper as of
September 3, 2004. Effective September 30, 2004, ETAM will charge
an Account Maintenance Fee of $2.50 per quarter for Fund balances
below $5,000. The fee will be waived for shareholders with combined
E*TRADE Funds account assets of $10,000 or more.
(3) Industry Average data source: Lipper Inc (September 2004) The Lipper
fund category benchmarks shown are the median total expense ratios of
similar retail, no-load and front-end loaded index funds, excluding
outliers.
(4) You can invest in the mutual funds available through E*TRADE
Securities' no-transaction-fee program without paying loads,
transaction fees, or commissions. However, all fees and expenses as
described in the prospectus will still apply. E*TRADE Securities will
assess a transaction fee upon the sale or redemption of a
no-transaction-fee position held less than 30 days. It is possible
that this transaction fee may be avoided by transferring the position
to an account held directly at the fund, though the transfer process
could be lengthy. E*TRADE Securities receives compensation from the
fund companies participating in the no-transaction-fee program.
(5) For details and important information about the 12b-1 rebate program,
please visit http://www.etrade.com/fundrebate for a list of participating
funds and specific restrictions such as account eligibility, tax
consequences, and payment schedules. The E*TRADE Index Funds do not
charge 12b-1 fees and are not part of the rebate program.
Important Notice
E*TRADE FINANCIAL and the E*TRADE FINANCIAL logo is a registered trademark
or trademark of E*TRADE FINANCIAL Corporation. The statements contained in
this news release that are forward-looking are based on current expectations
that are subject to a number of uncertainties and risks, and actual results
may differ materially. The uncertainties and risks include, but are not
limited to, changes in market activity, anticipated increases in the rate of
new customer acquisition, the conversion of new visitors to the site to
customers, the activity of customers and assets held at the institution,
seasonality, the development and enhancement of products and services,
competitive pressures (including price competition), system failures, economic
and political conditions, changes in consumer behavior and the introduction of
competing products having technological and/or other advantages. Further
information about these risks and uncertainties can be found in the
information included in the annual reports previously filed by E*TRADE Group,
Inc. or E*TRADE FINANCIAL Corporation with the SEC on Form 10-K (including
information under the caption "Risk Factors") and quarterly reports on Form
10-Q.
E*TRADE FINANCIAL Media Contact
Pam Erickson
E*TRADE FINANCIAL Corporation
617-296-6080
pam.erickson@etrade.com
E*TRADE FINANCIAL Investor Relations Contact
Adam Townsend
E*TRADE FINANCIAL Corporation
703-236-8719
adam.townsend@etrade.com
SOURCE E*TRADE FINANCIAL Corporation
 back to top
Related links:
http://www.etrade.com
CONTACT:
media, Pam Erickson, +1-617-296-6080, or
pam.erickson@etrade.com, or investors, Adam Townsend,
+1-703-236-8719, or adam.townsend@etrade.com, both of E*TRADE
FINANCIAL Corporation
|
