The Stack Overflow podcast is back! Listen to an interview with our new CEO.

Questions tagged [expense-ratio]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
13
votes
2answers
4k views

Does the expense ratio of a fund-of-funds include the expense ratios of its holdings?

Suppose a mutual fund invests only in other mutual funds, instead of investing in stocks or bonds directly. Does the reported expense ratio of that fund include the expense ratios of the funds it ...
7
votes
2answers
1k 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 ...
6
votes
3answers
305 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 ...
5
votes
2answers
935 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) ...
3
votes
2answers
140 views

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 ...
12
votes
3answers
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 ...
4
votes
3answers
603 views

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 ...
12
votes
3answers
299 views

Do I need to own all the funds my target-date funds owns to mimic it?

I just calculated out that investing my Roth IRA in a Lifecycle fund will cost me about $65k more than investing directly in the underlying funds, effectively doubling the expense ratio. And the funds ...
4
votes
1answer
1k views

How to quantify differences in return with low expense ratio vs high expense ratio mutual funds?

One often repeated piece of financial advice is to work to minimize your expense ratios in your mutual funds in order to maximize your returns. While it is often straightforward to determine the ...
3
votes
1answer
190 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?
1
vote
3answers
491 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 ...
1
vote
1answer
454 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 ...
0
votes
1answer
8k 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 ...