Index-tracking funds are inching closer to free.
State Street last month slashed the fee on its cheapest S&P 500 exchange-traded fund, known by ticker symbol SPLG, to 0.02%—making it less than a quarter of the cost of its popular SPY fund that tracks the same stocks. It is now the cheapest index fund in its class. A $1,000 investment in SPLG costs investors just 20 cents a year in fees.
The arrival of a 0.02% fund fee—about as close to zero as many in the market expect major funds to get—is the culmination of a decadeslong fee war among asset managers.
Source: You Might Be Paying Too Much for That Index Fund – WSJ
