The conversation between human and AI assistant.
Why do investors invest in index funds like Fidelity Spartan 500 Index (FUSEX) where the expense ratio is 0.10% and not in Vanguard S&P500 ETF (VOO) whose expense ratio is lower (0.05%) despite having the same return?
I was wondering, why do investors invest in index funds like Fidelity Spartan 500 Index (FUSEX) where the expense ratio is 0.10% and not in Vanguard S&P500 ETF (VOO) whose expense ratio is lower (0.05%) despite having the same return?
Good question! Typically, investors choose index funds based on brands they trust, availability of the fund, and the level of diversification the fund provides.