I know, index funds are cheap and avoid most manager risk. What I have never really understood is why people buy index funds from other providers who charge more for the same index! Comparing Schwab with Vanguard below, unless you couldn't reach the Vanguard minimum investment, why would you pick the Schwab fund?
Schwab S&P 500 Index Fund - Inv Shrs SWPIX
Gross Expense Ratio (before waivers): 0.35%
Net Expense Ratio (after waivers): 0.35%
Minimum investment $100.
Vanguard 500 Index Fund Investor Shares (VFINX)
Expense ratio as of 12/31/2007 0.15%
Minimum investment $3,000
Schwab Institutional Select S&P 500 Fund ISLCX
Gross Expense Ratio (before waivers): 0.22%
Net Expense Ratio (after waivers through 2/27/09): 0.1%
Minimum Initial Investment $75000
Vanguard 500 Index Fund Admiral Shares (VFIAX)
Expense ratio as of 12/31/2007 0.07%
Minimum investment $100,000
I can imagine someone investing in BOTH the Vanguard and the Schwab fund to diversify away some of their, extremely low, but still present, single management company risk. I'm just too cheap to do that!