What is the difference between .39% and .25% expense ration...is it a huge factor or doesn't affect to much?
2007-03-13 11:55:58 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
Expense ratios are the costs associated with owning a fund. The expense ratio covers the investment advisory fee, the administrative costs, 12b-1 distribution fees, and other operating expenses. So .39% and .25% represent the percentage of your assets in the fund going toward costs. Don't judge which fund you should invest in solely based on the expense ratio. Take into accout this factor as well as fund managers, fund style, fund history, etc.
2007-03-13 12:20:41 · answer #1 · answered by om_nupe 2 · 0⤊ 0⤋
In general you want the lowest possible expense factor. Anything below 1% is generally pretty good though. It also depends on what the two funds invest in. If you're looking at two S&P 500 index funds for example I would go with the one that has the lower expenses all other things being equal. However if the 0.39% fee is for a foreign small cap fund it might be worth the difference.
2007-03-13 19:03:04 · answer #2 · answered by Adam J 6 · 0⤊ 0⤋
it's mice nuts.....
2007-03-13 19:02:42 · answer #3 · answered by reaganontherock 2 · 0⤊ 2⤋