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Not exactly correct. With the money you have the cost would be $10 (account management fee) a year and expense ratio of 0.18%. You just missed out on the low balance fee of $10 if you have under $2500. This equals out to 0.55% (at $2700 invested). The account management fee doesn't go away untill you have 10k invested. The total expense quickly drops @5k it's 0.38%, @7.5k it's 0.31% and at 10k the account management fee is dropped. I believe you will find all of these expense ratios are very competitive with anyone out there.

The second choice would be to skip the fund and by one of the ETF's. ishares ETF on the S&P $500 is 0.09%.

Conclusion, Vanguard is great, but there are other options out there. Either way, although your expense ratio isn't that far above industry average it is far above what you can get. Ditch it and pursue something else.
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