At the end of September, Charles Schwab threw down the gauntlet in the exchange-traded fund arena by lowering the expenses on its 15 ETFs, some to as low as 0.04 percent.
According to a story in Bloomberg, investors in Schwab's U.S. Broad Market and U.S. Large-Cap ETFs will only pay 40 cents a year for every $1,000 they put into those funds. The idea is to attract investors to Schwab with the cheap offering and then keep them with other, more lucrative investment opportunities.
Vanguard answered back this week by changing the benchmarks on 22 of its ETF and index funds, effectively reducing costs for investors as well.
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