Vanguard clients investing at least $10,000 in some similar funds saw their expense ratios fall today to 0.07 percent from 0.15 percent. Previously, the fee applied only to Vanguard investors with at least $100,000 in a fund. http://www.investmentnews.com/article/20101007/FREE/101009909
When a company has billions of dollars under management, you have scale. Why would a company need to charge one percent or more to manage those pooled dollars with that type of scale like many mutual fund companies do?
I have asked this question over and over when I used to meet with wholesalers.
Costs are a certainty. Performance is not. We can control what we spend.
When a person spends money with an advisor, they should pay for meaningful personal advice and this may cost a few dollars. Paying a lot for investments does not count as meaningful advice to me.