Buyer Beware: The Impact of Expense Ratios on Index Funds
Mar 3, 2008
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By Craig L. Israelsen, PhD
Index funds are supposed to closely track their bogeyreturn the index minus their expenses. In this study of 68 mutual funds and ETFs mimicking the S&P 500, a number of funds either outperformed or underperformed the index. Expenses and active management are responsible.