Questions tagged [expense-ratio]

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If the expense ratio of a MF is decreasing over past few years, does that indicate anything?

If a Mutual fund has expense ratio, which is continously decreasing over past few years, does that mean anything? Does it show growth/decline of the fund? Is it good time to invest ?
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1 vote
0 answers
35 views

Does FoF mutual fund have higher net expense ratio than advertised? [closed]

I am looking at 2 funds. One is ETF which tracks an index. Another is Mutual Fund which invests only in the earlier ETF. Mirae Asset FANG+ Index ETF FoF MF: https://groww.in/mutual-funds/mirae-asset-...
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2 votes
2 answers
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Are the fees in my new 401k reasonable?

My employer has just moved from a Simple IRA to a 401k plan that I enrolled in. The fund in the 401k plan is the Vanguard VFORX 2040 target date plan. I felt pretty good about that expense ratio, but ...
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1 vote
1 answer
122 views

Why do some Vanguard Admiral Shares have higher expense ratios? [duplicate]

My understanding of Vanguard "Admiral Funds" is that they charge lower management fees (have lower expense ratios) in exchange for there being a minimum investment amount. However, it seems ...
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8 votes
3 answers
2k views

Should we really be looking at the expense ratio while choosing funds?

While doing a bit of research on choosing mutual funds, I found that almost all the blog posts and web pages seem to suggest how harmful the expense ratio is, how much money we lose over time due to ...
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7 votes
2 answers
2k views

How does a fund's expense ratio work?

There are several posts here but I cannot wrap my mind around it. Suppose a fund has an expense ratio of 0.055%, as I understand it that means $55 per $1000. Where do the expenses come from? Is every ...
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2 answers
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How much are fees on ETFs on Robinhood? Where are they shown?

Trading stocks on Robinhood is free. That's nice. But Robinhood also provides various funds and ETFs. They usually have an expense ratio which can range from 0.04% for a Vanguard ETF to 1% range for ...
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10 votes
2 answers
2k views

Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?

Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)'s expense ratio is 0.14% whereas VTI, its equivalent ETF, has an expense ratio of 0.03%. Why is the expense ratio of an index fund ...
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0 votes
1 answer
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Vanguard Digital Advisor Service Question

Vanguard Digital Advisor is an all-digital service that targets an annual net advisory fee of 0.15% across your enrolled accounts. From my research, your portfolio will consist of the following four ...
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1 vote
2 answers
141 views

Principal 401k expense fees

I max out my IRA and HSA, so my next haven is my 401k which I also max out. However, the fees for the funds it offer seems absolutely crazy. In my IRA and HSA I don't have an ETF with an expense ratio ...
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1 vote
1 answer
86 views

What is the actual growth of investment for a municipal bond fund?

I am a California resident, so if I invest in a California municipal bond fund, I will not pay taxes on both the federal and state level. I'm having difficulty interpreting the "Growth of $10,000" ...
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2 answers
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Are index fund expense ratios "priced in"?

I'm coming from a Robinhood "day trading" mentality, so I'm used to public advantages being "priced in", more or less. It seems like many people pick index funds based on their expense ratio. I would ...
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0 votes
1 answer
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Does it make more sense to purchase VTI or VUN?

I live in Canada. VTI and VUN are both US total market index funds through Vanguard. VTI is the American version, VUN is the Canadian version. VTI has an MER of 0.04% but the dividends are subject to ...
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1 vote
1 answer
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Showing expense ratio of a fund in real dollar terms

I'm a mostly-passive investor with some 401ks spread around the past few jobs I've had. I knew I should probably do "something" with them (the only option I had considered was rolling into my current ...
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0 votes
1 answer
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Do low cost ETFs or mutual funds really do well for an investor?

There are many ETFs, Mutual Funds and Unit Trusts in the market. Some ETFs advertise a low Expense Ratio and Total Expense Ratio. There are many examples: IVV, VOO and SPY for S&P 500 VNQ, RWR ...
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4 votes
3 answers
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How does one stock fund's charge of 1% more in operating expenses than another fund lower expected returns by 10%?

Personal Finance For Canadians For Dummies (2018). p 224. I changed "percent" to %. With stock funds, expenses are a less important (but still significant) factor in a fund’s performance. Don’t ...
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6 votes
3 answers
616 views

Why does the iShares EEM ETF have a higher expense ratio than similar ETFs like VWO?

Why is iShares able to charge more for EEM in comparison to VWO (a very similar ETF)? Investors/Traders are mostly institutional and in general, these entities have more insight (though simple ...
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3 votes
2 answers
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Why certain ETFs are popular( liquid) but Options on very same ETF are not

For example on comparing EEM/VWO , SPY/IVV/VOO etc and I always wonder why some ETFs are popular but options are not. I see a question How to pick ETFs that hedge against stock market crashes? that ...
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2 votes
1 answer
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why are there (slightly) different statistics among different websites for the same fund?

I generally assume the statistics (especially expenses-related statistics) for any given fund should be the same across different websites as they collect the information from the same resource/origin....
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8 votes
1 answer
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When a stock is replaced in an index, does the ETF incur a net loss?

Suppose I have invested in ETF VOO. This Vanguard ETF tracks the S&P 500. If a stock such as Goodyear (GT) that is contained in the S&P500 gets removed and replaced with another stock such ...
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4 votes
1 answer
93 views

Calculating or estimating implicit fees from 401k

I'm looking at my most recent Account Statement from a previous employer's 401k. There's a lil table on the first page with the opening balance, the range of dates that pertain to the statement, how ...
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5 votes
1 answer
121 views

Do mutual funds fees and expense ratios behave the same?

I am looking at mutual funds that list fees and expense ratio side by side. For the purposes of comparing funds, should I add all the numbers together and treat them as expense ratio? For example, ...
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1 vote
3 answers
293 views

How do expense ratios work for etfs without dividends?

My understanding is that if an ETF pays dividends, then the money I will get from the ETF will be dividend*(1 - expense ratio). What about an ETF of stocks whose only value comes from capital gains, ...
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3 votes
1 answer
147 views

How do Authorized Participants prevent index fund tracking error, including tracking error due to an expense ratio?

When I search for explanations of how index-tracking ETFs avoid tracking error, the following explanation is normally given: ETFs allow certain Authorized Participants to trade the underlying assets ...
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5 votes
4 answers
520 views

Is there any reason to choose my bank's index fund over Vanguard?

I'm planning on transferring some of the money in my RRSP into an index fund. My bank (CIBC), has a balanced index fund that has 1.2% management expense ratio (https://www.cibc.com/en/personal-banking/...
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2 votes
4 answers
127 views

Pay index fund expense ratios with cash instead of fund balance

My coworker told me that he pays his index fund expense ratios with cash instead of having the brokerage take it out of the fund balance. So to give an example. Say I have $20,000 in the Fidelity ...
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1 vote
2 answers
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Does a low expense ratio off-set a transaction fee? Or is it better to go with a high-ratio mutual fund without a transaction fee?

I currently use Fidelity for my Roth IRA. I am very interested in socially-responsible/sustainable/alternative energy investing. However for these type of funds I am typically finding 2 options: ex: ...
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0 votes
1 answer
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Financial statement analysis when interest received exceeds interest expense

I am conducting financial statement analysis on Apple and I noticed that the company has interest received that exceeds interest expense. In Apple's 2016 10-K form page 27 shows "Other Income/(Expense)...
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8 votes
1 answer
151 views

Tools to Cut Expense Ratios [closed]

An older (retired) relative asked for my help to assess their current investments in their IRA accounts. I'm not looking to give them investment advice (I'm not qualified and don't want that ...
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1 vote
1 answer
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Online resource to get expense ratios for mutual funds, index funds & ETFs? [closed]

Every article that deals with purchasing ETFs and index funds talks about expense ratio, but they usually don't show how to get it for an arbitrary fund. So I'm curious, is there an online resource (...
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0 votes
2 answers
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How do I find an ETF that is similar in investment goals to a given Mutual Fund?

I have some mutual funds that have a high expense ratio. I am looking to move that money to a low cost ETF but can't find a resource that will map a mutual fund to an ETF. Once I have that ...
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4 votes
3 answers
1k views

High expense ratio funds - are they worth it?

I have a mix of high expense (1.5%) mutual funds and low expense (0.2%) index funds. Everyone talks about getting out of high expense funds because it eats into your gains (which is true). However, ...
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3 votes
1 answer
430 views

How to compute real return including expense ratio

I am currently hesitating between 2 similar International Index Fund, FSIVX and FIENX. FSIVX have an expense ratio of 0.12% while FIENX have 0.63%. I can try to compare them side by side on google ...
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7 votes
2 answers
932 views

What is cheaper annually -- buying shares in a Vanguard index fund or buying shares of an ETF?

I’m having some difficulty figuring out which route would minimize the annual fees I pay. Vanguard offers an index fund that tracks the S&P 500 with an expense ratio of 0.25%. Then, there’s this ...
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11 votes
3 answers
2k views

Should I care about expense ratios?

I've never been an investor before, but I recently came into some money. In my understanding, expense ratios for mutual funds and ETFs are typically incorporated into the yield or ticker price. If ...
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1 vote
0 answers
237 views

New TD D-Series funds: are they worth considering (unknown expense ratios)?

I am currently a holder of TD's e-Series funds in my investment portfolio. However, the other day, I came across a new series of funds offered by TD: D-Series funds. From what I can tell, the funds ...
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1 vote
3 answers
616 views

Should I contribute to my 401k with a high expense ratio and no matching?

This is similar to this question (I can't comment yet so that's why I'm making this new question. The OP didn't mention anything about not having matching etc..): Still invest in 401K with a high ...
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3 votes
1 answer
220 views

Still invest in 401K with a high expense ratio?

I know that a low expense ratio is preferred. But what if the expense ratio is above the threshold limit (e.g 1.20%+), do you still invest in a 401K or not bother at all?
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2 votes
2 answers
345 views

Can expense ratios for certain ETFs differ between brokerages?

I have an account with two different online brokers. I've noticed when comparing the two sites, that one of them seems to have lower expense ratios for ETFs than the other. Is this possible or am I ...
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5 votes
3 answers
746 views

Vanguard ETF vs mutual fund

I was looking at Vanguards (VOO) ETF which aims to mimic the S&P 500 and noticed you do not pay any commission fees and it has an expanse ratio of just .05%.Then I looked at the mutual fund ...
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1 vote
1 answer
746 views

How to Compare Two ETFs, Accounting for Expense Ratio?

I'm attempting to compare ETFs but am not understanding how to account for expense ratios. (I'm assuming that the annual returns do not account for expense ratios already -- is this correct?) For ...
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2 votes
1 answer
170 views

Same fund in ETF and investor share, different expense ratio?

I'm looking at Vanguard 500 Index fund. There are three different options. Admiral share (VFIAX) for people who has $10,000+, and the expense ratio is 0.05%. Investor share (VFINX) with minimal ...
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0 votes
1 answer
9k views

When does a mutual fund's "expense ratio" deducted? [duplicate]

In a mutual fund's prospectus, there is usually an annual "expense ratio", representing annual expenses of that fund as a percentage of the net asset. When/how does this get deducted? I'm curious how ...
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5 votes
1 answer
878 views

Should I care about the expense ratio of the money market fund that holds excess cash in my brokerage account?

In my vanguard roth IRAs brokerage account, uninvested/excess cash is kept in a money market fund, VMMXX. I dont care about earning return on this money; I just keep it in cash to help with ...
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1 vote
1 answer
482 views

Expense ratio of an ETF included in the price or calculated separately

If an expense ratio of an ETF is 0.15% and the ETF is trading at 100, then when I buy the ETF, do I pay 100? Or do I pay 100.0015?
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2 votes
2 answers
206 views

San Francisco vs Madison

I am currently getting a 102K salary in Madison and have an offer for 125K from SFO. Should I accept this offer from a monetary perspective or not? I will like to maintain the same life style that I ...
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9 votes
2 answers
2k views

Shifting money between mutual funds

In the last 5-7 years, I've gradually invested money in several mutual funds via my bank (USAA). These funds now make up about a third of my portfolio. Initially I had invested in these funds ...
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6 votes
1 answer
488 views

Mutual fund net expense ratio greater than gross expense ratio

I'm looking at some funds to invest my 401k into. I noticed that a couple appeared to have a higher "Net Operating Expense Ratio" (0.56%) than the "Total Operating Expense Ratio" (0.50%). If it ...
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9 votes
1 answer
652 views

How can one relatively easily show that low expense ratio funds outperform high expense ratio funds?

Almost everybody these days says that passively managed, low expense ratio funds outperform actively managed, high expense ratio funds. I believe it, and have been investing accordingly, but I would ...
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6 votes
2 answers
947 views

401(k) plan/investment fees: Are they the expense ratios, or something else as well?

I have a naive question. 401(k) fees are a popular topic lately. I am very interested in this as I max out my 401(k) contribution every year, well past the employer match. I am not sure if the 401(k) ...
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