You bet you'd never see that headline from me, didn't you? Being a big index investor, why would I ever say this?
Because fund expenses are one of the main costs that drive down an investment's total return as this article from the Motley Fool details. Here are the key points:
Though I'm a stock investor at heart, I believe almost everyone should have index funds at the core of their portfolios.
But there are some index trackers out there that should be dumped, because they simply don't deserve your hard-earned dollars.
Check out your index fund's expense ratio, and see how it stacks up with competing products. If it's significantly higher, you should definitely consider moving your money into a lower-cost fund that tracks the same index.
I've talked before about how to get the biggest return from your investments and minimizing expenses is a major part of the equation (along with lowering taxes). Keep this in mind no matter what you invest in as it will impact your return rate significantly.
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