Following Fidelity’s lead last week, E*Trade announced Tuesday that it would reduce expenses in both its S&P 500 and International Index funds to nine basis points, lowering the fees to well below the industry average.

The move, according to E*Trade, moves those funds to as much as 88% below industry averages. With no loads to pay, no transaction fees and a minimum balance requirement of just $5,000, E*Trade continues to move in on the common investor.

"Investors understand the importance of low expense ratios to fund performance, particularly when it comes to index funds," said E*Trade President Lou Klobuchar. "Reducing our expense ratios to the lowest in the industry, at nine basis points, reaffirms our commitment to deliver value to both current and prospective customers."

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