Our mission is to help you obtain financial freedom. Checkout Our Youtube Channel Checkout Our Youtube Channel


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.

Inline Feedbacks
View all comments

More ClearValue Insights

Default Thumbnail

Beyond Jobs: Why Recent Employment Figures May Not Sway the Fed

These past few days have been quite uncertain, especially regarding what is in store for interest rates in the U.S. But with the latest news revealing that nonfarm payrolls surged by a hefty 303,000 in March, beating expectations and showing a significant jump from the previous month, and with the unemployment rate holding steady at […]

Read More
Default Thumbnail

Against The Tide: The Contrarian View On Fed Rate Cuts

Following the Federal Reserve’s recent decision to keep rates unchanged and the suggestion of future rate cuts later in the year, there’s been a prevailing sense of optimism among many investors, with reassurances that these anticipated rate cuts will materialize eventually. However, Vanguard is offering a different view point as they are suggesting that the […]

Read More
Default Thumbnail

A recommendation.

It would certainly be helpful if the posts and contend on this site would be dated. I get tired of reading recommendations and never know how old they are. Help us to know what is new vs stale info and recommendations.

Read More