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Abby Johnson · Cryptocurrency · Fidelity · Zero-Fee Funds
Abby Johnson, CEO of Fidelity Investments, is aggressively transforming the $7.2 trillion financial services giant by launching zero-fee index funds and a standalone cryptocurrency custody company, signaling a decisive shift towards innovation and calculated risk-taking.
Taking the helm in 2014, Johnson has initiated a blitz of strategic moves, including the acquisition of eMoney for $250 million, unifying RIA and IBD platforms, and embracing open APIs. The zero-fee funds, including FZROX and FZILX, attracted nearly $1 billion in their first month and reached $1.908.6 billion by October 31, 2018, as reported by RIABiz.
These initiatives target younger investors and aim to convert Fidelity's $2 trillion in 401(k) assets into managed retail assets, despite potential cannibalization of existing funds and exposure to the volatile cryptocurrency market. Johnson's approach contrasts with her father Ned Johnson III's later tenure, emphasizing speed and iterative development over perfection, as she stated in a Barron's interview.
