The advisor assigned to him has invested his money in mutual funds
with high expense ratio.
ETPs with the lowest expense ratio in each ETFdb Category are assigned a higher Expenses Realtime Rating than ETPs
with higher expense ratios.
He invested in individual stocks, he bought actively managed mutual funds
with high expense ratios, but the more he learned, the wiser he got.
No doubt the fund has used the increased AUM along
with the higher expense ratio to jack up its own bottomline too.
Car insurance that costs too much, bank account fees, home - energy wasters or mutual funds
with high expense ratios.
This competition works to both drive down the expense ratio of plain vanilla funds at the same time generating new, more specialized funds
with higher expense ratios.
Financially less sophisticated investors — those who are attracted to active growth funds
with high expense ratios — experience the greatest return gaps over time.
The right way to settle this debate would be with facts — do mutual funds
with higher expense ratios outperform ones with lower expense ratios?
The authors conclude that the phenomenon of making poorly timed allocation decisions is observed disproportionately in less sophisticated investors, who are more likely to invest in funds
with high expense ratios and who do not qualify for institutional share class funds.
For example, U.S. equity funds with the lowest expense ratios had a 62 % success rate over the five years ended Dec. 31, 2015 — three times greater than the success rates of funds
with the highest expense ratio.
Therefore, $ 100,000 invested in a foreign ETF with a lower expense ratio will grow to $ 336,083 at 12 % over ten years verses only $ 304,415 if invested in a typical foreign stock mutual fund
with a higher expense ratio.
But that's making an assumption — that mutual funds
with higher expenses ratios perform better.
Funds
with high expenses ratios tend to continue to have high expenses ratios.
Also, if your financial adviser pushes fixed income investment funds
with high expense ratios, this is an indication that they have not done their homework.
Most 401k plans offer a fairly pathetic array of mutual funds
with high expense ratios.
Hidden fees: Along with poor investments, a 401 (k)'s performance can be dragged down by hidden fees such as administrative charges and index funds
with high expense ratios.
Not exact matches
In one instance, it allegedly used a class
with an
expense ratio that was 43 basis points
higher than another it could have used.
With R&D
expense recognized immediately and capital expenditures being amortized over multiple years, I would argue that today's companies demand
higher PE
ratios vs the industrial
high CapEx companies of 100 years ago.
In the long run,
high expense ratios are difficult for portfolio managers to overcome, particularly for funds
with lower risk, less aggressive investment objectives.
«The main reason is if their fees will be
higher in the IRA --[such as] AUM fees, commissions,
expense ratios — it may make sense for them to keep it
with the plan provider.
How can you compare these because if you make
higher return
with Schwab doesn't that beat VTSAX no matter the
expense ratio?
The downside
with Fidelity is
higher expense ratios.
Look for ETFs
with low
expense ratios and
high trading volume relative to other commodity ETFs, and avoid ETFs
with extremely small asset bases.
35 % international is a little
high for my liking, tracking down funds
with decent
expense ratio / returns is tough
Though also more expensive than VIG
with an
expense ratio of 0.55 %, it pays a
higher yield at 3.4 %.
And while cutting investing costs can't guarantee a larger nest egg, Morningstar research shows that funds
with the lowest
expense ratios tend to outperform their
higher - fee counterparts.
Most of his holdings are in registered and non-registered accounts — mainly cash and fixed income,
with 30 % made up of
high - fee Canadian equity mutual funds
with management
expense ratios (MERs) of up to 2.4 %.
Those, even the ones
with a passive indexing rule, tend to have
higher expense ratios (compare QQQE at 0.35 % to QQQ's 0.15 or VADDX at 0.28 % to SWPPX at 0.03 %).
It found that the CPP, which is the largest plan
with $ 269 billion of assets, had the
highest expense ratio at 1.07 % of its assets on average for the whole period between 2009 and 2014.
The bottom line is that she does not need a complicated portfolio
with a ton of loading fees and
high expense ratios.
Leverage
ratios depend somewhat on what industry a company is in, a company
with high infrastructure
expenses and steady cash flows such as a utility company would be able to support a
higher leverage
ratio than one
with unstable cash flows.
A study by BrightScope found that stock funds in 401 (k) s
with fewer than 100 participants carried average
expense ratios that were roughly 50 %
higher than plans
with 5,000 to 9,999 participants.
Plus, they can potentially put you into investments that have
high expense ratios while not offering you similar ones
with lower
expense ratios.
Hard to see how any advisor «acting as a fiduciary» could recommend the funds
with the substantially
higher expense ratios.
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.
Now, these are total returns, not counting the loads /
expenses, but in comparing two of the top funds
with the same investment objective, in this case would the load and
higher expense ratio be more beneficial in the long run?
Although Canada has a thriving and varied mutual fund market however
with (management
expense ratio) MER's still on the
high side when compared
with American and International studies and surveys.
Typically, your
expense ratio will be lower
with stock index funds, and
higher with bonds and international funds.
Coupled
with the
high management
expense ratios of more than 2 % that each of those funds carried, the Reeds figure they've paid tens of thousands of dollars in fees over the years without knowing it.
Currently, 3 ETFs track the Markit iBoxx $ Liquid
High Yield Index
with more than $ 15.07 B in ETP assets
with an average
expense ratio of 0.91 %.
The rest were target date funds
with pretty
high expense ratios.
VTSMX is the same as VTSAX, but
with a lower minimum requirement ($ 3k) and a slightly
higher expense ratio.
If you have a
high expense ratio on a fund
with a smaller balance, it might not affect your overall total returns all that much.
A
high expense ratio on investments
with larger balances, though — typically funds that invest in U.S. stocks or bonds — will be problematic over time.
As for people in the comments that point out you don't like mutual funds (I assume especially mutual funds
with loads and / or
high expense ratios)-- to that I say, as long as your employer is matching contributions (let's say 1:1) you start out
with a 100 % gain on your money so even a miserable fund that only returns enough to cover fees — you still DOUBLE YOUR MONEY.
And while Sarah appears happy
with her bank mutual fund investment strategy, she should nonetheless watch for the fees and
high management
expense ratios she is paying on these financial products.
My only concern
with your portfolio is the active funds, they must have
higher expense ratios.
By nature, they are actively managed
with frequent rebalancing
with higher management
expense ratios.
Due to these characteristics, leveraged mutual funds typically have
higher operating
expenses as a percentage of assets compared to other funds,
with a total management
expense ratio of typically 3 % to 5 % per year compared to 1.3 % to 1.5 % for a non-leveraged mutual fund.
In fact, several investors justify a
higher expense ratio with «as long as it generates superior returns, let them charge.