The US government provided a lot of cheap money to the market.
This led Price to Earnings ratio for S&P500 returned back to 21.5, which is to 2%
yield. More over this is based on prior year earning for a lot of companies! In times like this portfolio expenses are one of the things to look at.
Properly measured, the average actively managed dollar must
underperform the average passively managed dollar, net of costs. Empirical
analyses that appear to refute this principle are guilty of improper
measurement. All six of my investments are passively managed.
However, the financiers are always find a way to skim a little
bit more. I decided to calculate, how much am I paying a year for my passive financial independence portfolio?
My funds charges:
Charges, %
|
Annual charge, USD
|
|
Emerging Markets Stock Index Fund
|
0.23
|
256
|
Eurozone Stock Index Fund
|
0.12
|
126
|
U.S.500 Stock Index Fund
|
0.10
|
132
|
Global Small-Cap Index Fund
|
0.29
|
303
|
Growth Fund
|
0.259
|
129
|
Kids S&P500 funds
|
0.06
|
23
|
Total
|
969
|
