In Fund Expenses, Tenths of a Point Mean a Lot – NYTimes.com
In #Fund Expenses, Tenths of a Point Mean a Lot: $VTSMX gives 20% more return than active mgt (expenses .06% v 1.12%)
http://www.nytimes.com/2014/01/12/business/mutfund/in-fund-expenses-tenths-of-a-point-mean-a-lot.html
QT:{{”
In an article last year in Financial Analysts Journal, William F. Sharpe, a Nobel laureate in economics, calculated that owners of the Vanguard Total Stock Market Index fund, a passively managed fund with annual expenses of 0.06 percent, could “look forward to having the funds saved for their retirement provide 20 percent more purchasing power” than owners of actively managed stock funds, with typical expenses of 1.12 percent.
“}}