USAA is following quickly on the heels of Fidelity and E*Trade's index fund fee cuts.

The fund manager is cutting fees on its S&P Index Fund by nearly half. USAA's Reward shareholders will pay 9 basis points, down 47 percent from 17 basis points; and Member shareholders will pay 19 basis points, down 46 percent from 35 basis points.

The fee cuts take effect on October 1, according to a Monday SEC filing.

USAA is also mimicking its fee-cutting predecessors by including a clause that allows it to back out of the fee cuts at any time: "From time to time IMCO may voluntarily, without prior notice to shareholders, waive all or any portion of fees or agree to reimburse expenses incurred by a Fund."  

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