ETFs & Mutual Funds
E*Trade Plans Zero-Cost Funds That Only Platform Clients Can Buy
- Morgan Stanley’s E*Trade files for five no-fee mutual funds
- Free funds seen as a way to bring new clients in the door
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Morgan Stanley’s E*Trade is planning a suite of free funds, with a catch — only customers of the brokerage platform would be able to buy them.
The firm submitted plans on Monday for five mutual funds spanning stocks and bonds, according to a filing with the Securities and Exchange Commission. While all five funds would be zero-cost, buying would be restricted to investors with “a self-directed account” at E*Trade from Morgan Stanley.