Not exact matches
Since the returns
from debt funds are lower than that of equity funds, a
high expense ratio can reduce the returns.
The Fund's net
expense ratio will be
higher than 1.70 % to the extent that the Fund incurs
expenses excluded
from this arrangement.
From the group above, I have chosen to write about Utility Select Sector SPDR ETF because of its
high dividend yield, great liquidity, and low
expense ratio.
High expense ratios are one of the biggest factors driving assets away
from actively managed funds.
The
expense ratios range
from less than 20 basis points for funds offered by Vanguard, State Street, Schwab, Northern Funds, Fidelity, Blackrock, and DFA to nearly 60 basis points and
higher for funds offered by Legg Mason, Great - West, and Nuveen.
If you look at the SSgA funds at their website, the
expense ratios are much
higher, ranging
from 0.18 % to 1.26 %.
The returns
from a globally diversified all - ETF portfolio with an
expense ratio of 0.15 % represents a
high hurdle for investors of all stripes to overcome.
Expense ratios can range
from 0.05 % to as
high as over 5 %.
iShares sports the lowest
expense ratio (all funds have an
expense ratio of only 0.10 %), while Guggenheim's funds offer a little better liquidity, slightly
higher yield (for a number of reasons, as we discuss below) and diversity
from a larger number of holdings and by including financial companies in their holdings.
It would be unsurprising if investors in
high expense ratio funds suffered more
from poor timing decisions.
On the whole,
expense ratios range
from as low as 0.2 % (usually for index funds) to as
high as 2 %.
Expense ratios vary wildly from fund to fund, and a higher expense ratio doesn't mean you're getting more exp
Expense ratios vary wildly
from fund to fund, and a
higher expense ratio doesn't mean you're getting more exp
expense ratio doesn't mean you're getting more expertise.
However, these funds may have
higher expense ratios or loads than comparable funds
from different companies.
I don't expect a huge number of funds to choose
from in a 401k plan, but all the plans I've ever seen are loaded with funds that have outrageously
high management
expense ratios (MERs) and they underperform.
The
High Dividend Yield ETF (VYM) saw its
expense ratio decline to 0.09 %
from 0.10 %, while Global Ex-US Real Estate (VNQI) had
expenses of 0.18 % in the 2015 fiscal year vs. 0.24 % a year earlier.
Vanguard's target retirement funds have
expense ratios that are, in some instances, only about a fifth as
high as comparable target date funds
from the other families.
The additional $ 31,668 represents a 10.4 %
higher gain as a result of the compounded difference
from the reduced
expense ratio.
The active management debate implies that after all the additional management
expense ratio costs, mutual fund trading costs,
higher capital gains taxes, and extra time are taken into account, investors are supposed to have some crystal ball to sort future winners
from losers.
Meanwhile, the
expense ratio on the $ 2.9 billion Vanguard Mid-Cap Value ETF (NYSEArca: VOE) is now
higher — 0.12 percent — a 20 percent increase
from the previous fee of 0.10 percent.