Register | Forgot Your Password? | Close

(AP) - LOWER FEES: 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 NUMBERS: Fund expenses for investors in the plan fell 77 percent to $14.78 per $10,000 invested. Prior to transitioning to an all-index fund approach, the weighted-average operating expense ratio on these investors' 401(k) plans was $65.11 per $10,000 invested.

HOW IT WORKS: Index funds seek to match the market by tracking an index. Their fees are lower than actively managed funds.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
share this story:
Attention KTAR.com Comment Users: We have recently changed our comments boards.
We would like you to be part of the conversation and The Voice of Arizona by logging in with your Facebook, Twitter, Google+ or Disqus account. Existing KTAR (Arizona Sports) account members will need to create a Disqus account or use one of the aforementioned social media logins. Thank you.
comments powered by Disqus
close

Share: