The expense ration of a target fund doesn't change over time, only their allocation
The expense ration of a target fund doesn't change over time, only their allocation
That's most likely your 401(k) program's fault, passing the fees to you.
I've been w/ Vanguard for some time and their fees and expense ratios have never gone up, although technically they have changed (lower fees).
Mine for my 401k went from 0.12% to 0.10% a while back, I was skeptical but it seems legit :)
Fund | Investor Expense Ratio | Admiral Expense Ratio |
Total Stock Market | 0.17% | 0.05% |
Total Bond Market | 0.12% (for the II fund) | 0.10% |
Total International Stock | 0.22% | 0.16% |
Total International Bond | 0.23% | 0.20% |
Weighted Average | 0.17% | 0.09% |
@seattlecyclone: I read something recently on the Bogleheads site that might explain why they use the Investor ERs instead of Admiral for Vanguard. I believe at least part of the rationale was that you're paying a slight premium for the rebalancing they do for you so you don't have to take the time to do it yourself.
I don't fault Vanguard for trying to make a buck.