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.
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