FYI: Index funds cost next to nothing. That’s still too much.
So says a class-action lawsuit filed this month against H-E-B LP, which alleges that the San Antonio-based company has been overpaying for index funds in its employees’ retirement plan. Annual expenses on some of those market-matching funds run between 0.11% and 0.14%—but should instead be as low as 0.015%, the lawsuit argues.
It’s starting to look as if any fee you don’t need a microscope to see may be too big to last. The suit against H-E-B is among the newest of several recent cases to contend that merely cheap isn’t good enough for retirement investors. And it’s the latest sign that the cost of investment management is on its way to zero.
Regards,
Ted
https://www.wsj.com/articles/penny-pinching-funds-are-going-to-get-even-cheaper-11569596372?mod=searchresults&page=1&pos=1
