E*TRADE Lowers Index Fund Expenses

June 7, 2004 (PLANSPONSOR.com) - E*TRADE Asset Management reduced the expenses of its S&P 500, Russell 2000, and International Index Funds.

After the reduction, E*TRADE’s S&P 500 fund will have an expense ratio of 0.10%, compared to an industry average of 0.40%.   Additionally, the firm’s Russell 2000 funds’ expense ratio will be reduced to 0.26%, compared to the industry average of 0.65% and the International fund will go down to 0.33%, where the industry average is 0.80%, according to a news release

The E*TRADE Index funds use an indexed portfolio management strategy to match the performance   of the underlying indexes they are designed to track. E*TRADE Asset Management reduced the expense ratios of its proprietary stock index funds to create lower expense ratios compared to industry averages.