Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
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How Short Selling And Leverage Impact Your Mutual Fund Returns
"The first that you may notice when looking at the simple index funds compared to the complex funds is the difference in expense ratios. ... The simple index fund ... does very little trading, which is what helps it keep its expense ratio so low."
Sigh. Trading costs are excluded from expense ratios, so a lack of trading cannot be what keeps a fund's ER low.
WSJ: "Portfolio managers can rack up steep expenses buying and selling securities, but that burden isn't reflected in a fund's standard expense ratio."
Comments
Sigh. Trading costs are excluded from expense ratios, so a lack of trading cannot be what keeps a fund's ER low.
WSJ: "Portfolio managers can rack up steep expenses buying and selling securities, but that burden isn't reflected in a fund's standard expense ratio."