Am I over-thinking expense ratio? I have two workplace funds. One has ER 0.005%, with (let's pretend) annual yield of 10%. Fund 2 has ER 0.3% and annual yield of 12%. When/how does the fund take the fee cut and affect my gains?
Is it at the end of the hypothetical year? For 100K,
#1: $100,000*1.1*(1-0.00005)=$109,999.45
#2: $100,000*1.12*(1-0.0030)=$111,664.00
Or is it more complicated? Or maybe there is another stat on the fund (Fidelity) that tells me the net yield?
P.S. Yes, I know about the "return comes and go, fees are forever."
Is it at the end of the hypothetical year? For 100K,
#1: $100,000*1.1*(1-0.00005)=$109,999.45
#2: $100,000*1.12*(1-0.0030)=$111,664.00
Or is it more complicated? Or maybe there is another stat on the fund (Fidelity) that tells me the net yield?
P.S. Yes, I know about the "return comes and go, fees are forever."
Statistics: Posted by hedge_hog88 — Sun Jun 30, 2024 3:19 am