E*TRADE from Morgan Stanley Introduces No Fee Index Mutual Funds

Clients can leverage these management fee-free vehicles to gain broad exposure to major capital markets

Funds represent another innovative retail enhancement leveraging the partnership between Morgan Stanley’s Investment Management and Wealth Management divisions

E*TRADE from Morgan Stanley today announced the launch of five no commission, 0% expense ratio (0.00% management fee) ¹ Index Mutual Funds exclusively for E*TRADE clients with eligible brokerage accounts ². The new funds, which will be managed by Morgan Stanley Investment Management (MSIM), include:

• E*TRADE No Fee Large Cap Index Fund (Ticker: “ETLGX”)
• E*TRADE No Fee Total Market Index Fund (Ticker: “ETTOX”)
• E*TRADE No Fee International Index Fund (Ticker: “ETISX”)
• E*TRADE No Fee Municipal Bond Index Fund (Ticker: “ETMUX”)
• E*TRADE No Fee U.S. Bond Index Fund (Ticker: “ETBOX”)

The announcement follows E*TRADE’s pioneering move to eliminate trade commissions and early redemption fees for all online mutual fund trades, adding to E*TRADE’s $0 online commission offering that includes US-listed stocks, ETFs, and options trades. Further, the platform offers over 5,000 mutual funds (nearly 300 of which are from MSIM) and clients can use the Fund Screener or best-in-class Bond Resource Center³ to find investments that match their goals.

“This marks another chapter in E*TRADE’s storied history of bringing innovative products and services to self-directed investors,” said Chad Turner, Head of Morgan Stanley Wealth Management Platforms. “The barriers of entry to investing have never been lower and with these index funds, clients have access to the broader market with a 0% expense ratio. And with the backing from Morgan Stanley and the Investment Management team, we are uniquely positioned to help clients pursue their financial goals. They can put more of their dollars to work with management fees off the table.”

E*TRADE serves as one of three core client channels within Morgan Stanley Wealth Management, spanning Advisor-led, workplace, and retail investing and trading, enabling the business to serve clients across all segments and life stages.

“With E*TRADE fully integrated into our comprehensive Wealth Management offering, we are able to not only meet clients wherever they are in their financial journeys but can deliver the innovative investment solutions that clients value and help create and deepen relationships,” said Vince Lumia, Head of Wealth Management Client Segments at Morgan Stanley. “And the reality is, we are only beginning to unlock the power of what we can build and deliver to our clients through this critical channel.”

E*TRADE from Morgan Stanley’s mission is to enhance the financial independence of traders and investors through a powerful digital offering and professional guidance. To learn more about the new funds, visit etrade.com.

1. The E*TRADE No Fee Funds will have a set of unitary fee of 0.00% subject to certain exclusions. The No Fee Funds’ management agreement provides that MSIM will pay all expenses of each No Fee Fund (including expenses of the Trust relating to the Fund), except for litigation expenses, and other extraordinary expenses not incurred in the ordinary course of each No Fee Fund’s business. Although the No Fee Funds have no expense ratio, you will be subject to any fees charged by E*TRADE or Morgan Stanley Wealth Management, as applicable.
2. Shares of the E*TRADE No Fee Funds can only be purchased through a self-directed account at E*TRADE from Morgan Stanley (“E*TRADE”). There is no minimum initial investment amount. E*TRADE may impose policies, limitations and fees that are different than those described in each No Fee Fund’s prospectus. Shares of the No Fee Funds can be transferred to and held within a Morgan Stanley Wealth Management account, but purchases can only be made through E*TRADE. Shares of the No Fee Funds cannot be transferred to financial institutions other than Morgan Stanley Wealth Management.
3. E*TRADE was named as best online broker for bond investors, Kim Clark, “Best Online Brokers and Trading Platforms”, Kiplinger, August 2024; In Kiplinger's annual Best Online Brokers Review of 9 firms issued August 2024, E*TRADE was named best online broker for bond investors. Firms were evaluated on investment choices (20%), tools (20%), mobile app (20%), advisory services (12.5%), research (12.5%) customer service (10%), and fees (5%).

About Morgan Stanley Wealth Management

Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services.

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.7 trillion in assets under management or supervision as of December 31, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

NOT ALL PRODUCTS AND SERVICES ARE AVAILABLE IN ALL JURISDICTIONS OR COUNTRIES.

E*TRADE charges $0 commission for online US-listed stock, mutual fund, ETF, and options trades. Exclusions may apply and E*TRADE reserves the right to charge variable commission rates. The standard options contract fee is $0.65 per contract (or $0.50 per contract for customers who execute at least 30 stock, ETF, and options trades per quarter). The retail online $0 commission does not apply to Over-the-Counter (OTC), foreign stock transactions, large block transactions requiring special handling, futures or fixed income investments. Underlying mutual fund/ETF expenses apply. Service charges apply for trades placed through a broker ($25). Stock plan account transactions are subject to a separate commission schedule. Additional regulatory and exchange fees may apply. All fees and expenses as described in the prospectus still apply. E*TRADE generally has a conflict of interest to promote investment products sponsored by its affiliates, including the No Fee Funds. For more information about pricing, visit etrade.com/pricing.

About E*TRADE from Morgan Stanley and Important Notices

E*TRADE from Morgan Stanley provides financial services to retail customers. Securities products and services offered by Morgan Stanley Smith Barney LLC, Member SIPC. Investment advisory services offered by Morgan Stanley Smith Barney LLC, a Registered Investment Adviser. Commodity futures and options on futures products and services offered by E*TRADE Futures LLC, Member NFA. Banking products and services are offered by Morgan Stanley Private Bank, National Association, Member FDIC. All separate but affiliated subsidiaries of Morgan Stanley.

More information is available at www.etrade.com.

The No Fee Fund's prospectus or, if available, a summary prospectus, contains its investment objectives, risks, charges, expenses and other important information and should be read and considered carefully before investing. For a current prospectus or, if available, a summary prospectus, please visit etrade.com/mutualfunds or go to the fund’s website.

Investing in securities involves risk, including possible loss of principal.

The material provided by E*TRADE from Morgan Stanley or its affiliates is for educational purposes only and is not an individualized recommendation. This information neither is, nor should be construed as, an offer or a solicitation of an offer to buy, sell, or hold any security, financial product, or instrument discussed herein or to engage in any specific investment strategy by E*TRADE from Morgan Stanley.

E*TRADE from Morgan Stanley, E*TRADE, and the E*TRADE logo are registered trademarks of Morgan Stanley or its affiliates.

Morgan Stanley Distribution, Inc. is the distributor of the E*TRADE No Fee Funds.

© 2025 E*TRADE from Morgan Stanley. All rights reserved.

CRC 4334002 04/2025

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