Index-tracking funds have become incredibly affordable for investors, thanks to a substantial reduction in fees. A standout example is State Street, which recently lowered the fee on its S&P 500 exchange-traded fund to an astonishingly low 0.02%. This move has triggered a fierce fee war among asset managers, ultimately benefiting investors who now have access to highly cost-effective investment choices. In fact, building a diversified portfolio with these funds can now be done without incurring total fees surpassing 0.05%. This is a significant drop from the average fee of 1% observed two decades ago and can potentially lead to substantial long-term savings amounting to hundreds of thousands of dollars. Furthermore, the decrease in fees has not only favored index-tracking funds but has also sparked an increased interest in lower-cost actively managed funds. Moreover, while this has slowed down the trend of fee compression in the ETF industry, the growing investment influx into active funds with fees below 0.4% confirms that investors are increasingly opting for more economical investment options.