NEW YORK (CNNfn) - Online brokerage E*Trade Group Inc. is teaming up with Barclays Global Fund Advisors to launch a line of no-load mutual funds
The Palo Alto, Calif.-based company said Friday it will offer index funds and "fund-of-funds" products at its Mutual Fund Center with the help of the Barclays Global Investors subsidiary.
Financial aspects of the deal weren't released, but E*Trade expects its entry into the asset management business to be completed by early 1999.
Shares of E*Trade (EGRP) soared more than 12 percent at midday, gaining 2-9/16 to 23-9/16.
Brian Murray, the vice president and general manager of E*Trade's Mutual Funds Group, called the move a "logical extension" of the company's business line.
"This step will provide E*Trade the opportunity to add additional revenue streams unrelated to volatile market conditions, distinguishing us from the relatively simple business models of many of our competitors," Murray said.
E*Trade already offers 4,000 funds, more than 750 of which are available without transaction fees.
According to published reports, E*Trade also will launch a line of its own mutual funds, one of which will be indexed to the S&P 500.