E*TRADE, a subsidiary of Morgan Stanley, has launched five new no-commission, 0% expense ratio Index Mutual Funds for clients with eligible brokerage accounts.

The newly introduced funds include the E*TRADE No Fee Large Cap Index Fund, Total Market Index Fund, International Index Fund, Municipal Bond Index Fund, and U.S. Bond Index Fund.

This initiative builds on E*TRADE's previous decision to eliminate trade commissions and early redemption fees on online mutual fund trades.

Each of these No Fee Funds features a unitary management fee of 0.00%, with Morgan Stanley Investment Management covering all operating expenses except extraordinary costs.

By waiving management fees, the no fee funds are designed to provide clients with more capital to invest.

Chad Turner, Head of Morgan Stanley Wealth Management Platforms, highlighted that these funds significantly lower barriers to market access, enabling clients to invest more effectively.

It is important to note that shares of the E*TRADE No Fee Funds cannot be transferred to other financial institutions, and clients are encouraged to consult the fund’s prospectus for terms and eligibility.

In August 2024, E*TRADE was recognized as the best online broker for bond investors by Kiplinger, showcasing its strong digital experience and professional guidance.

Vince Lumia, Head of Wealth Management Client Segments, mentioned that E*TRADE's integration into Morgan Stanley's broader Wealth Management services enhances client engagement and offers innovative solutions.

These funds are exclusively available through E*TRADE, with no minimum initial investment required.