Hi Bogleheads,
Many threads here discuss as a consideration some expense ratio savings which are at the single-digit (or low double digit) basis points, e.g., regarding a VTI+VXUS combination vs. VT. (It's not the only consideration that comes up regarding those, but it does seem to come up.)
I'm not sure I understand why it should matter to me as a plain retail investor. Here's a comparison between VOO and SPY, for example https://portfolioslab.com/tools/stock-c ... on/SPY/VOO, which shows performances that seem virtually identical, despite the expense ratios being 0.03% vs. 0.09%, respectively. Conditioned on the returns being identical, am I missing something in being agnostic to this? To exaggerate, if Blackrock (or whatever) could somehow give me the same performance for a hypothetical 99% expense ratio, then why should I care that they get rich off it?
One argument that makes sense is that low expense ratios are a good indicator of performance, but, again, conditioned on performance, why should it matter to me?
Am I missing something? Thank you very much.
Many threads here discuss as a consideration some expense ratio savings which are at the single-digit (or low double digit) basis points, e.g., regarding a VTI+VXUS combination vs. VT. (It's not the only consideration that comes up regarding those, but it does seem to come up.)
I'm not sure I understand why it should matter to me as a plain retail investor. Here's a comparison between VOO and SPY, for example https://portfolioslab.com/tools/stock-c ... on/SPY/VOO, which shows performances that seem virtually identical, despite the expense ratios being 0.03% vs. 0.09%, respectively. Conditioned on the returns being identical, am I missing something in being agnostic to this? To exaggerate, if Blackrock (or whatever) could somehow give me the same performance for a hypothetical 99% expense ratio, then why should I care that they get rich off it?
One argument that makes sense is that low expense ratios are a good indicator of performance, but, again, conditioned on performance, why should it matter to me?
Am I missing something? Thank you very much.
Statistics: Posted by monkeytoad — Sat May 25, 2024 3:01 pm — Replies 19 — Views 717
