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S&P 500 Index funds are offered by various mutual fund companies. Some are more efficient than others.

The expense ratio pays the operating expenses of the fund. That includes fees for the investment managers and advisors as well as the front office people who send out statements, keep track of accounts, and answer questions.

Vary large funds often have the lowest expense ratios as they have more shares to carry those costs. The incremental costs of servicing additional shareholders are minimal.

Vanguard and Fidelity are usually mentioned as those with the lowest expense ratio. Vanguard used to be 0.18%, but I understand Fidelity has Spartan funds that are even lower these days. Plus there are admiral funds at Vanguard that are lower.
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