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I agree with your sentiment about having a little too much risk on the credit side, hence, my original post. Do you have any recommendations for a short-term, high quality bond fund with low risk? I don't consider THOPX as fitting that criteria. What do you think about GNMA funds?If I'm doing the math right, then, 50% of the total portfolio is in assets that have significant equity/credit risk (40% stock plus 10% in bond funds that are totally on the credit-risk side - EVBAX, PRHYX, BHYAX).
If you're a conservative investor in the way I think of that term, you might consider reducing that 50% figure to ~ 40% or so, in whichever way makes sense to you -- by reducing either equities or the purely credit-risky bond funds. (That's using the 'conservative allocation' fund category percentages - like say the fund VWINX - as a proxy for a 'conservative investor.')
I won't comment on the other funds other than to say that some of those are really small portfolio percentages for bond funds, and there appear to be opportunities to consolidate.
That fund has an expense ratio of 0.04%.Is there a LC index fund?
There is an index fund VINIX.
There is an index fund VINIX.Is there a LC index fund?
IMHO, LC is the area where indexing makes the most sense. Unless you are looking for a manager that has a mandate to preserve capital first, hedge with cash when stocks look pricey and that is the strategy you want (ala funds like YAFFX, PRBLX or SEEDX to name a few) the S&P500 index will out perform most LC funds over time.
@Junkster
Yeah, and how can you blame the worker? Investing is not taught in the schools as part of the required courses. One job I was on had a 401k plan administered by Fidelity. The employees were given choices of something like 75 actively managed funds, without information about each one other than what category it was in. From lots of different fund families, not just Fidelity.
The sharks run fast in the retirement funding industry. Their prey is the worker with no knowledge of the subject of investing and there are plenty of them sadly.
The fund's SAI should list the exact amount paid to its distributor to pay to brokerage platforms for carrying the fund. You might have to do some math, but you can probably figure out an approximation of how much of the ER went to outside platforms.How does one determine how much of the expense ratio goes to the fund complex for NTF vs transaction fee funds (TF)? From what I gather, it looks like it's the "other expenses" and 12b1 fee combined.
Shareholder servicing is a sort of administrative fee that funds pay to have people answer questions about the fund or to produce marketing materials. It isn't a supermarket expense. It can come from the 12b-1 or elsewhere.Does the supermarket get the full .46% or maybe the 12b1 fee and the "shareholder servicing fee" of .10%?
My understanding is that there are varying levels of cooperation between fund houses and broker-dealers. Companies like D&C, Vanguard, Primecap, Tweedy, and Mairs and Power don't really play along with the discount brokerages. They provide their own distribution, which supposedly aids in their independence and, in some cases, lowers ERs. It also means brokerages can charge more to make up lost revenue.The Institutional share class doesn't have the .25% 12b1 fee. Does that mean they fund supermarket just gets the "other expenses?"
Now, if we look at Fidelity's supermarket, why do some funds get charged a $75 transaction fee (vanguard, dodge and cox- any others?) and pretty much anything else get charged $50? I'm assuming there is some revenue sharing with the lower $50 TF funds but not quite the 45 basis points or so of the NTF funds. Any idea how much of the expense go for these other funds? Thanks as always!
Tax sheltered plans (401(k)s, 403(b)s) can be structured as annuities, which have wrapper fees. It common practice for these annuities to reduce their wrapper fees to the extent that they get kickbacks (um, 12b-1 or other servicing fees) from the underlying funds.
When you say "high fee funds", is that high expense ratio fund, or they came with loads?
What type of fees? Some load funds have the load waived in a 403b plan, depending on the specific 403b plan.
I don't see any way for a high expense ratio fund to not deduct the full expense ratio for all investors in that same share class, whether the investors are in a 403b fund or taxable accounts. The specific share class invested in would be the key. Not sure I would believe the reps from the insurance company.
But I thought Twentieth Century was just a no load family.
Agree...mentioned here a bit:
I'll add that the TRP funds that are offered NTF are "Advisor Class" shares, and carry a 0.25% 12b-1 fee that likely few here have seen. (I have - that's a story for another day.)
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