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?
Does the difference in expense ratio really make a significant impact on returns over time?
Yes, the difference in expense ratio can have a significant impact on returns over time. Even a small difference in percentage points can add up to significant differences in investment returns over the course of several years.