How Do Investors Compare Index Fund Fees?

Imagine that you’re searching for a new car. And you’ve found two cars from different manufacturers that are effectively the same in terms of fuel efficiency, horsepower, and style. But one costs $20,000, and the other costs $200,000. Which car would you buy? You may be thinking, “Why would anyone pay 10 times more for a car when there is a cheaper, almost-identical alternative on the market?” It seems irrational, right? Traditional economics upholds that in a perfectly rational world, supply and demand determine an appropriate price point for equivalent goods or services. raditional economics upholds that in a perfectly rational world, supply and demand determine an appropriate price point for equivalent goods or services. If the price exceeds what people are willing to pay, they will avoid the good or service. ….[READ]