Whats your overall expense ratio?

[justin]

Just finished mine. I was predicting about .25, but came in at .42.

I had the same experience. I predicted (and responded to the poll) that I had a 0.3-0.4% ER, but after calculating the exact number, it was ~0.57%. My guess is many poll responders are optimistic. As I did, they probably overlooked those funds with 0.5-1% ER's (active small cap or international/emerging markets funds) and focused on their big chunk of 0.18% (or 0.1%) S&P 500 index at Vanguard. Even though we have plenty of Fidelity Spartan at 0.1% and VG institutional shares at 0.08%, the actively managed funds at American funds we have are 0.5-0.7% ERs.

 

[bpp]

I had the same experience.

I thought it was 0.27, but rounded up to 0.3-0.4. Upon re-examination, it looks more like 0.4 when all miscellaneous costs are figured in, so I barely squeaked it out.

Bpp

 

[larry]

.43 here.

 

[mickeyd]

I never paid attention to the ER in money market accounts, but they are higher than some of my equity accounts. I don't get it.

I noticeed this also. I believe that the reason is that they offer extra stuff (checking account) and have many trades since the investments are such short term instraments that require cashing in and buying something else with the proceeds. Many trades=many expenses.

 

[wallygator69]

Hi,

Anyone willing to share an Excel spread sheet for keeping track of their mutual funds. Name, symbol, Expense ratio, yield, NAV, purchase price, ytd return etc.

I have minimal Excel expertise. I can set something up but it would take me quite a while and I am also curious as to what detail some of the folks here track and think is valuable.

I have the big kiss off meeting with my friend/FA on the 29th.

Thanks,

Wally

 

[lazyday]

Fidelity Cash Reserves (FDRXX) claims an ER of 0.43%. For a money market?!? What's up with that?

I haven't used it, but Fido also has a Spartan short term bond index, at .2% or .1% ER depending on balance.

If the "cash reserves" fund is for cash sweep, with no minimum in practice, then a .43% ER but fair yield would be much better than most brokers, which pay next to nothing on cash balances. (VG is good on cash balances though, I believe.)

I'm in the habit of keeping cash balance very close to zero, from using brokers that pay perhaps 1/4 what T-bills do.

 

[lazyday]

from the responses here and another thread, it looks like the folks that work for government have the lowest cost savings plans.

I agree. But even without government plans, it's possible to have a rock bottom ER:

-VTI total US market, .07%
-individual TIPS, 0%
-individual other Treasuries, 0%
-VGK, Europe .18%
-VPL, Pacific .18%
-VWO, EmgMkts .30%

With a "typical" asset allocation using the above, should be easy to get under .15%; even under .1% for someone who likes bonds/cash.

Even using small and value tilts in US, ER can stay very low, as VG has ERs there still quite low. VTV .11%, VB .1%, VBR .12%.

(my ER is a little over .4%, largely because of OAKEX, PCRIX, and HAINX. Used to be much worse, when half my portfolio was OAKEX!)

 

[Nords]

If the "cash reserves" fund is for cash sweep, with no minimum in practice, then a .43% ER but fair yield would be much better than most brokers, which pay next to nothing on cash balances. (VG is good on cash balances though, I believe.)

7-day yield of 4.22%, I'm not complaining about that.

I would have expected a money market fund to be cheaper to run than the DOW Dividends ETF (DVY, 0.40), the S&P600 Small-cap Value ETF (IJS, 0.25) and your short-term bond fund. It's hard to believe that the 0.43 ER is justified and not just an excuse to rip off the shareholders.

Fidelity's "core account" used by the brokerage to settle trades & pay bills is their municipal money market (FTEXX), currently paying a whopping 2.75 with an ER of .0.45%. And Lipper claims that the MM average ER is 0.71%.

I need to start a mutual fund. It'll just be a money market paying a fraction under the APY of 7-year CDs. With enough customers I'll be able to beat Fidelity's ERs!

 

[lazyday]

I would have expected a money market fund to be cheaper to run than the DOW Dividends ETF (DVY, 0.40), the S&P600 Small-cap Value ETF (IJS, 0.25) and your short-term bond fund. It's hard to believe that the 0.43 ER is justified and not just an excuse to rip off the shareholders.

If this fund were mainly a cash balance fund for brokerage accounts, I could see a high ER, if it were typically used with very small balances and for short time periods. Still have to mail out annl reports and such.
Even VG's money market funds have ER of .3%.

---I can't believe I'm defending a high ER! What's wrong with me?!

Of course .43% is excessive if VG can do it for .3%. But Fido wants a profit...

I guess the .43% is (if used for cash sweep) less of a rip off than most brokers, but more of a rip off than VG's brokerage.


> Fidelity's "core account" used by the brokerage to settle trades & pay bills is their municipal money market (FTEXX), currently paying a whopping 2.75 with an ER of .0.45%.

If that's tax free, I'd guess you'd use a different fund in an IRA.
I read in a post somewhere (sorry don't recall which forum) that you can change your sweep fund at Fido. Maybe they have one with a lower ER. Not sure if you could use the Spartan funds--may really need to get up to min balance to do so, which I think is $10K.


> I need to start a mutual fund.

ugh, sounds like too much work!