ST Alpha - "It's not terrible for an allocation fund. " (Reading a Post)

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In response to "1.05% expense ratio = hell no -- nm" by ty97

It's not terrible for an allocation fund.

Posted by spamlet Sep 22 '14, 16:50

Worse than SP 500 yes but for worldwide allocation not terrible. It's the load that kills.

Responses:

But do allocation funds tend to beat the expenses to make it worthwhile? - ty97 Sep 22, 16:53 15
- The one he talked about averaged 10% gain over the last 28 years or so. -- nm - James Bond (aka Igor) Sep 22, 17:00 4
  - the inception to date (1976) return on the Vanguard S&P 500 is 11.11% with a 0.17% exp ratio - decline Sep 22, 17:10 3
    - Wouldn't you benefit from a little more diversification than just holding an index fund? -- nm - James Bond (aka Igor) Sep 22, 17:36
    - Do you have a chart handy for him. I was looking for the one I have filed away. Showing what fees will do to your compound interest? - Bacon Sep 22, 17:12 1
      - im at home on my kindle so not at the moment. but i can certainly point him to some from work -- nm - decline Sep 22, 17:14
- It's also about diversity outside of the US. -- nm - spamlet Sep 22, 16:58 9
  - But don't target date funds do that (for less)? - ty97 Sep 22, 17:06 8
    - not really. target date funds will have some intl diversity but the majority of them invest in their fund families index funds - decline Sep 22, 17:13 5
      - Hmmm, now I need to consider - ty97 Sep 22, 17:22 3
        
        It's diverse as far as bonds, stocks, maybe some commodities. -- (link) - Bacon Sep 22, 18:04 1
        
        Link is for Fidelity international funds -- nm - Bacon Sep 22, 18:04
        
        i certainly would -- nm - decline Sep 22, 17:26
      - This is a good nuget of information thx. - Bacon Sep 22, 17:14
    - I don't know. The Fidelity funds are lighter on the international side then I would like. - spamlet Sep 22, 17:11
    - Target Funds in my experience don't always spread into international. -- nm - Bacon Sep 22, 17:07

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It's not terrible for an allocation fund.

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