@article {Haslem24, author = {John A. Haslem and H. Kent Baker and David M. Smith}, title = {Institutional S\&P 500 Index Mutual Funds as Financial Commodities}, volume = {17}, number = {2}, pages = {24--34}, year = {2008}, doi = {10.3905/joi.2008.707215}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Given their simplicity and presumed commodity-like nature, institutional S\&P 500 Index mutual funds should be subject to active price competition, resulting in only nominal size-adjusted differences in expenses. This article finds a wide disparity among fund expense ratios and their corresponding characteristics and performance. Overall, the evidence suggests some price competition among institutional S\&P 500 funds, but not to the extent that they may be considered financial commodities. One explanation for the existence of high-priced index funds is that they tend to require significantly lower minimum initial purchases. The data do not support the notion that institutional investors buy high-priced S\&P 500 funds to access broader or lower-cost investment services from fund families, and the conclusion is that the market for institutional S\&P 500 funds is not completely homogenous.TOPICS: Security analysis and valuation, performance measurement, technical analysis}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/17/2/24}, eprint = {https://joi.pm-research.com/content/17/2/24.full.pdf}, journal = {The Journal of Investing} }