Index Fund Fees
July 15, 2004. US Securities and Exchange Commission (SEC) is investigating Morgan Stanley on the amount of fees it charges on some index funds. Index funds are less costly to run because fund managers simply mimic a benchmark. It does not require much research that can make funds expensive. Morgan Stanley charges an annual fee of 1.5 per cent on its S&P 500 Index tracker fund, compared with competitor Vanguard Group's 0.18 per cent.