I own the American Funds 2030 Target Date Retirement Fund (AAETX).
AAETX owns a collection of other funds such as New Perspective Fund (ANWPX).
Am I paying a fee for both AAETX and the underlying ANWPX?
Under fees and expenses the expense ratio seems to address this question.
Expense ratios for funds of funds are as of the most recent prospectus, and include the weighted average expenses of the underlying funds
How ever the difference between to listed fees (.1+.14+.22 = .46) and listed expense ratio is (0.85-0.46=0.39). seem way to low for the underlying fees.
Is this possible? Is my math wrong?
Fees & Expenses Fees Annual Management Fees 0.10% Other Expenses 0.14% Service 12b-1 0.22% As of each fund's most recent prospectus. Expense Ratio Gross Net Fund * 0.85% 0.75% Lipper Mixed-Asset Target 2030 Funds Average 1.07% * Expense ratios for funds of funds are as of the most recent prospectus, and include the weighted average expenses of the underlying funds.