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Are the expense ratios for a Mutual Fund commulative if it is a Fund of Funds (or are u paying twice or more)? |
I own VGTSX with expense ratio of .32%. This fund includes: VEURX (.27%), VPACX(.27%), and VEIEX (.42%). It is the weighted average - you do not "add" the individual ERs and Vanguard does not charge any additional fee on top of the weighted average. You are being myopic by focusing on expense ratios. If you're looking for a Fund of Funds, you can do a whole lot better than Vanguard but, yes those managers get paid (and more). The most important word in the financial world is NET - that is, what is your net return on investment (what is left in your pocket at the end of the day)? |
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