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URL:  http://boards.fool.com/keep-in-mind-acceptable-expense-ratio-depends-on-30638467.aspx

Subject:  Re: .26% Expense Ratio Date:  4/16/2013  4:17 PM
Author:  pauleckler Number:  72054 of 75540

Keep in mind, acceptable expense ratio depends on your reference point. Index funds do not require stock picking talent or research. Hence, they can have very low expense ratios.

Managed funds must hire talented professionals to succeed. That gives them higher cost. But there are lots of other factors involved including size of fund, how overhead is allocated, etc. Bottom line is compare expense ratio with that of other similar funds, but ideally performance is so much larger, fractions of a percent is not a major concern if performance is good.

Usually loads are the big expenses. If loads are involved, its better to look for a good performing no load.
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