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Rekenthaler Report

3 Times When Fund Costs Don't Tell the Full Story

The industry provides excellent information, but it’s not perfect.

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Mostly Correct
The costs of owning mutual funds/exchange-traded funds are well-specified. Auto manufacturers sticker cars with estimated fuel expenditures, and appliance dealers post anticipated energy consumption, but those are rough guesses. Actual expenses will vary widely by user. Whereas with funds, a shareholder’s costs can generally be determined precisely, multiplying the expense ratio by the investment’s size. 

Sometimes, however, the official numbers don’t tell the complete story. This column discusses three exceptions:

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.