Is 1 Expense Ratio Too High

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Is 1 Expense Ratio Too High. April 07, 2015, 08:39:58 am » i am not the investor in this particular fund, it is a friend of mine and their broker is a family friend of theirs. While small, they can affect a fund's return over time.

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Actively managed funds typically have higher expense ratios, such as mutual funds, while passively managed funds, such as etf’s, typically have lower So a high expense ratio can really hurt your investment performance; You can easily find an s&p 500 index fund with an expense ratio of less than 0.2%, for example.

When It Comes To 401(K) Fees, A Lot Of Participants Are Paying Way Too Much.

For example, a fund might have an a class with an expense ratio of 1.00%, and a c class with an expense ratio of 1.50%. For instance, let’s say you invest 1 lakh in a fund with an expense ratio of 2%. The bad news is that if you paid too much fees, a 1% increase in fees costs you $175,000 in returns.

You Can Easily Find An S&P 500 Index Fund With An Expense Ratio Of Less Than 0.2%, For Example.

As a general rule, mutual funds that invest in large companies should have an expense ratio of no more than 1%, while a fund that focuses on small companies or international stocks should have an expense ratio lower than 1.25%. The costs that are incurred every year. Yet, if you have a very high expense ratio, then over time you may see you etf's performance drift down and away from the performance of the.

However, There’s Good News For Investors, Too:

How the etf expense ratio works let's say you invest $100,000. Maybe it was the only funds available to them in their 401(k) portfolios. For mutual funds that invest in large u.s.

Expense Ratios Have Been Declining For Years.

A good rule of thumb is anything under.2% is considered a low fee and anything over 1% is high, according to many experts. Expense ratio of 0.015% and a 10 year annualized return of 14.99%. Higher expense ratio example 1:

So A High Expense Ratio Can Really Hurt Your Investment Performance;

He went on to say that the expense ratio is currently “at least 500 basis points too high”. An expense ratio is a fixed fee mutual funds and etfs charge to cover their operating costs. In q2 the overall expense ratio for gi was 34.8.

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