Index fund fees

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Joined: Mon Feb 18, 2013 4:43 pm

Index fund fees

Postby jinx_apologist » Mon Feb 18, 2013 4:52 pm

I have some questions about index fund fees. Just as an example, the Vanguard index funds cite an expense ratio of 0.18%, and each of the underlying funds cite expense ratios of about .19 to .22. Does this mean that the actual expense is the .18% of the index fund plus the .22% of the underlying fund, making it .40% in total?

Does this mean that it would be more cost effective to buy the underlying funds and re-balance them myself each year, just using the index fund as a guide?

Bichon Frise
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Joined: Fri May 04, 2012 2:23 pm

Re: Index fund fees

Postby Bichon Frise » Tue Feb 19, 2013 8:04 am

No, it is the fee they have listed for the fund. So the target date fund has an ER of 0.18%.

As you can see, if you can get admiral funds, you can build these things for yourself cheaper.
Bichon Frise

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