So one of the things told is that we won't get index return due to expenses. I believe Rob Berger mentioned that when he runs numbers, he subtracts out 0.5% for this. Empower appears to do a bit more and subtract 1%. However, is this the case, I recall an article in WSJ may be a decade or so ago when they interviewed Gus Sauter who ran the index fund at the time on how he rans the index fund. Apparently, he tries to match the index by using some futures to get a better price. When the fund is in Billions, a penny save can be a lot of profit. I have notice that in the 3 fund index, every index track the index pretty closely, close enough to be under around 0.5%. The only exception is international where it can be off by quite a bit more than the total stock or total bond. Do you not get index return, assuming taxes are not invovled?
Statistics: Posted by gavinsiu — Sat Feb 03, 2024 8:20 pm — Replies 3 — Views 378