Image Credit: Alex Nabaum
By Jason ZweigÂ |Â Â Sept. 27, 2019 10:59 am ET
Index funds cost next to nothing. Thatâs still too much.
So says a class-action lawsuit filed this month against H-E-B LP, which alleges that the San Antonio-based company has been overpaying for index funds in its employeesâ retirement plan. Annual expenses on some of those market-matching funds run between 0.11% and 0.14%âbut should instead be as low as 0.015%, the lawsuit argues.
Itâs starting to look as if any fee you donât need a microscope to see may be too big to last. The suit against H-E-B is among the newest of several recent cases to contend that merely cheap isnât good enough for retirement investors. And itâs the latest sign thatÂ the cost of investment managementÂ is on its wayÂ to zero.…
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For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,Â The Devilâs Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
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