Penny-Pinching Index Fund Investors May Pay a Price
Fussing over fees has smaller payoffs as some fund's expenses draw nearer to zero.
A version of this article was published in the February 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
In early February, Charles Schwab (SCHW) launched the latest volley in a years-long fee war among providers of low-cost exchange-traded funds and index mutual funds. As of March 1, a number of existing Schwab index mutual funds slashed their fees. In cases where the funds have an ETF counterpart, the two are now priced identically.
Ben Johnson has a position in the following securities mentioned above: SWPPX. Find out about Morningstar’s editorial policies.