In looking at the choices we have in my 401k it generated a question.
I have 2 funds for my large cap stocks:
A low fee s&p 500 and
A higher fee large cap fund.
Normally I always chose the low fee fund, however the 1, 3, 5, and 10 year returns are higher on the the large cap fund.
My question is are the expenses taken out before or after the performance rate is calculated?
If before the large cap fund is doing better in all periods, if after then the large cap is better in the 1 and 3 year periods - tied in 5 year and slightly worse in 10 year.
Thanks for your help.