Photo by Pepi Stojanovski on Unsplash

Investors know they pay a fee to invest in funds – it comes out in the expense ratio. 

Fidelity recently rolled out four funds with ZERO expense ratios. ETFs that actually pay investors to invest are coming next.

Salt Financial recently submitted an SEC filing to offer a stock that would pay investors 0.05% to invest in the fund. It may sound crazy, but Salt Financial is doing this to quickly build capital in their new fund.

If it works it is likely other funds will follow.

Large investment firms have been engaged in fee wars for years. Investors benefit from the constantly decreasing expense ratios – if funds start to offer products with zero expense ratios they will continue to benefit.

Time will tell if Salt Financial’s plan will work and if we see more funds pop up with zero expense ratios. Read the full article from Forbes here.