Author Topic: 401(k) question on what "Fund Performance (with Load)" means  (Read 1582 times)

demliag

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401(k) question on what "Fund Performance (with Load)" means
« on: November 28, 2017, 03:46:16 PM »
Hello,

I am a relative new comer to actively managing my 401(k), and currently looking at it to determine if I need to make any adjustments. I am comparing two funds in the "Stocks (Large Company)" section with the below information:
Fund Name           Expense Ratio                   3-year Average Annual Return                 3-year Average Annual Return (Fund Performance with Load)
VINIX                       .04%                                10.75%                                                    10.79%   
FCNTX                      .68%                                13.21%                                                    12.03%

Basically my question is, does the "Fund Performance (with Load)" mean that the expense ratio is taken into consideration in the return percentage? IE just looking purely at the 3-year rate of return (I know this is not the only thing to look at) FCNTX would have been the better investment, even though it had a much higher expense ratio? Trying to wade through the plethora of information presented to me and find out what I need to know to make the best investment choices.

Thanks,
Allen

bacchi

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Re: 401(k) question on what "Fund Performance (with Load)" means
« Reply #1 on: November 28, 2017, 05:01:21 PM »
Yes, the load is considered in the "Fund Performance with Load" column. However, 3 years is nothing. What's the 10 year return post-fees and post-load?


MDM

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Re: 401(k) question on what "Fund Performance (with Load)" means
« Reply #2 on: November 28, 2017, 07:36:34 PM »
Basically my question is, does the "Fund Performance (with Load)" mean that the expense ratio is taken into consideration in the return percentage?
Expense ratios are taken into consideration in all of the usual (Morningstar, etc.) charts and tables.  In this example, they are likely considered for both the with and without load numbers.

Loads differ from expense ratios (google the terms for details) and thus "performance with load" merits a separate entry.  Although the difference is small, it doesn't make sense for VINIX to have a higher return with load than without.  May need to peruse the footnotes if any to understand why.

Quote
IE just looking purely at the 3-year rate of return (I know this is not the only thing to look at) FCNTX would have been the better investment, even though it had a much higher expense ratio? Trying to wade through the plethora of information presented to me and find out what I need to know to make the best investment choices.
Indeed it would have been, although as bacchi notes a 10 year comparison might be more relevant.

The best comparison, however, would be of the future returns for various funds.  If anyone finds hindsight glasses in time, please post those returns. :)

NoStacheOhio

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Re: 401(k) question on what "Fund Performance (with Load)" means
« Reply #3 on: November 29, 2017, 06:01:40 AM »
Is the plan itself charging a load fee? IIRC neither one of those funds has a load.

When it's available buying VINIX is a no-brainer. The only thing cheaper is VIIIX.

Out of curiosity, does the plan offer VIEIX, which is the companion fund to VINIX giving out total U.S. equity in two funds?