You mean investors, at a minimum, will pay at least 3 times what they used to pay to invest their money. That&#x27;s far more substantial than you are making it out to be. SPY is an ETF tracking the S&amp;P 500. It has ~180 billion in assets. 0.1% is a nontrivial $180 million.<p>It is rebalancing, but you seemed to state that rebalancing only occurs at creation and redemption. In the case of SPY, the holdings will change every time the underlying index changes, which has happened 20 times in 2015. Each change in holdings requires, at a minimum, 2 transactions, and involves 40 tax payments as a consequence.