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Cheapest S&P 500 Index Funds

Posted By Jim On 10/01/2009 @ 2:15 pm In Investing | 22 Comments

If you own an index fund and you’re paying an expense ratio greater than 0.35%, you’re getting ripped off. I created a list of index funds from major brokers, like Vanguard, Fidelity, and Schwab, looked up their expense ratios on Google Finance, and then listed them in the order from cheapest to most expensive.

None of the funds on the list have a sales load of any kind and I was surprised to find a fund as cheap as 0.09%. I was even more surprised to find index funds that charged over 1%. Check out State Farm S&P 500 Index B [3] – it has a 1.49% expense ratio and a 5% deferred load! (a deferred load is a fee that is charged when you sell an asset) It has $425M in total assets too and each one of their customers is getting ripped off.

Cheapest S&P 500 Index Funds

Fund Name Ticker Expense Ratio Fund Minimum
Schwab S&P 500 Index Sel SWPPX [4] 0.09% $100
Fidelity Spartan 500 Index FSMKX [5] 0.10% $10,000
Columbia Large Cap Index Fund NINDX [6] 0.14% $2,500
E*TRADE S&P 500 Index Fund ETSPX [7] 0.16% $5,000
Vanguard 500 Index Fund VFINX [8] 0.18% $3,000
SSgA S&P 500 Index SVSPX [9] 0.18% $10,000
USAA S&P 500 Index Fund USSPX [10] 0.26% $3,000
Vantagepoint 500 Stock Index II VPSKX [11] 0.26% $0
DWS Equity 500 Index Fund BTIEX [12] 0.32% $2,500
T. Rowe Price Equity Index 500 PREIX [13] 0.35% $2,500

If you know of an S&P 500 Index fund that should be on the list, please let me know.


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[1] Tweet: http://twitter.com/share

[2] Email: mailto:?subject=http://www.bargaineering.com/articles/cheapest-sp-500-index-funds.html

[3] State Farm S&P 500 Index B: http://www.google.com/finance?q=SNPBX

[4] SWPPX: http://www.google.com/finance?q=SWPPX

[5] FSMKX: http://www.google.com/finance?q=FSMKX

[6] NINDX: http://www.google.com/finance?q=NINDX

[7] ETSPX: http://www.google.com/finance?q=ETSPX

[8] VFINX: http://www.google.com/finance?q=VFINX

[9] SVSPX: http://www.google.com/finance?q=SVSPX

[10] USSPX: http://www.google.com/finance?q=USSPX

[11] VPSKX: http://www.google.com/finance?q=VPSKX

[12] BTIEX: http://www.google.com/finance?q=BTIEX

[13] PREIX: http://www.google.com/finance?q=PREIX

Thank you for reading!