No. of Recommendations: 0
You're not actually buying the S&P 500 index, you're buying one of many funds that try to closely mimic the S&P 500. Each separately managed fund will have their own fee structure, so that's why your fee is different than the 0.2% quoted. In addition, a fund may have a lower fee for accounts over a certain size. If I had to guess, the 0.2% expense ratio was likely for Vanguard and your fund isn't managed by Vanguard.

As to where the money goes, it pays the managers who invest and administer the funds, which includes keeping track of your account. Part of the expense ration difference can be due to the size of the fund. A $1 billion portfolio is cheaper to run than a $10 million portfolio on a per dollar invested basis.

Calvin
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement