Schwab Retirement Plan Services says that employees who enrolled in an all-index fund 401(k) plan launched by the company about a year ago saw the expenses on their funds drop nearly 80 percent.
The company said Thursday that fund expenses for investors in the plan, dubbed Schwab Index Advantage, fell 77 percent to $14.78 per $10,000 invested.
Prior to transitioning to an all-index fund approach, Schwab says the weighted-average operating expense ratio on these investors' 401(k) plans was $65.11 per $10,000 invested.
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