ST Alpha - "But do allocation funds tend to beat the expenses to make it worthwhile?" (Reading a Post)

SlickerTalk
Search Archives
The Leaderboard
The FAQ

Down to Post

Backboards:

Posts: 152

In response to "It's not terrible for an allocation fund. " by spamlet

But do allocation funds tend to beat the expenses to make it worthwhile?

Posted by ty97 Sep 22 '14, 16:53

Most of the research I have seen says no (in the long run). Perhaps in the short term?

Responses:

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

Post a message top

But do allocation funds tend to beat the expenses to make it worthwhile?

Replies are disabled on threads older than 7 days.