Comments on: Frugality and Index Fund Fees http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html personal finance blog with anecdotes, advice and commentary. Sun, 08 Nov 2009 13:09:32 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Jonathan http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3772 Jonathan Sat, 04 Feb 2006 07:21:54 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3772 Nickel - SPDRs and ETFs each also have an expense ratio built in. For example, SPY (<a href="http://finance.yahoo.com/q/pr?s=SPY" rel="nofollow">Yahoo Info</a>) has an ER of 0.11%. Wow, that's low. Nickel – SPDRs and ETFs each also have an expense ratio built in. For example, SPY (Yahoo Info) has an ER of 0.11%. Wow, that’s low.

]]> By: fivecentnickel.com http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3762 fivecentnickel.com Sat, 04 Feb 2006 03:52:15 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3762 What about things like SPDRs? Don't you just pay the commission, and no further fees? If you're planning on holding for a long time, it seems like that might turn out for the best. What about things like SPDRs? Don’t you just pay the commission, and no further fees? If you’re planning on holding for a long time, it seems like that might turn out for the best.

]]> By: jim http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3606 jim Wed, 01 Feb 2006 05:17:59 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3606 Tony - I don't really know how 2% stacks up for an actively managed fund, does that include every single fee or just the manager's fee? 17% return is great but that's not predictable, the fee is, but sounds like you made a good choice though. Tony – I don’t really know how 2% stacks up for an actively managed fund, does that include every single fee or just the manager’s fee? 17% return is great but that’s not predictable, the fee is, but sounds like you made a good choice though.

]]> By: Avery http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3605 Avery Wed, 01 Feb 2006 03:56:42 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3605 jim -- Yes, that's my point, and it sounds like we're in agreement. Just don't forget that in order for a menu of stocks to match an index, the fund needs to be regularly rebalanced and there is a human deciding which subset of stocks comprise of an index based on an often subjective choice of metrics. jim — Yes, that’s my point, and it sounds like we’re in agreement. Just don’t forget that in order for a menu of stocks to match an index, the fund needs to be regularly rebalanced and there is a human deciding which subset of stocks comprise of an index based on an often subjective choice of metrics.

]]> By: Tony http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3586 Tony Tue, 31 Jan 2006 19:41:12 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3586 What about mutual funds? What percent fee is too high? I am in a few mutual funds that are charging ~2%, am I crazy b/c my "broker/finanical advisor" says I am not. (fund performance has been ~17% over last 3yr) What about mutual funds? What percent fee is too high? I am in a few mutual funds that are charging ~2%, am I crazy b/c my “broker/finanical advisor” says I am not. (fund performance has been ~17% over last 3yr)

]]> By: jim http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3571 jim Tue, 31 Jan 2006 13:10:49 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3571 Avery - On a typical (non-index) fund I would agree, but usually index funds aren't actively managed because the menu of stocks they own match the indices. Avery – On a typical (non-index) fund I would agree, but usually index funds aren’t actively managed because the menu of stocks they own match the indices.

]]> By: FMF http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3570 FMF Tue, 31 Jan 2006 13:06:48 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3570 Everyone knows that $19.99 is waaaaaaaaay cheaper than $20. Just ask Walmart! ;-) (It's psychological, of course.) Everyone knows that $19.99 is waaaaaaaaay cheaper than $20. Just ask Walmart! ;-)

(It’s psychological, of course.)

]]> By: Avery http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3565 Avery Tue, 31 Jan 2006 05:35:53 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3565 It's not just the fund fee you need to look at, it's also how actively managed the fund is that you need to look at. The more actively managed, the more the fund is buying and selling, and the more it will cost you in capital gains taxes. Index funds avoid most (but not all) of this. It’s not just the fund fee you need to look at, it’s also how actively managed the fund is that you need to look at. The more actively managed, the more the fund is buying and selling, and the more it will cost you in capital gains taxes. Index funds avoid most (but not all) of this.

]]> By: jim http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3539 jim Mon, 30 Jan 2006 14:25:25 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3539 But if the two are right next to each other, why would you pick the $20 one when you can get the same item for $19.99? But if the two are right next to each other, why would you pick the $20 one when you can get the same item for $19.99?

]]> By: Big Mike http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html/comment-page-1#comment-3538 Big Mike Mon, 30 Jan 2006 14:00:26 +0000 http://www.bargaineering.com/articles/frugality-and-index-fund-fees.html#comment-3538 Seems to me that there's no difference between $19.99 and $20.00. There's REALLY no practical difference. Putting in the miniscule effort to chose one over the other is a waste of time, and time is money. Seems to me that there’s no difference between $19.99 and $20.00. There’s REALLY no practical difference. Putting in the miniscule effort to chose one over the other is a waste of time, and time is money.

]]>