| Analyzing Fund Fees and Expenses | Disclaimer | Glossary | |
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Like most investments, exchange-traded funds (ETFs) and mutual funds have fees and expenses that are paid by investors. Because these fees and expenses can vary widely from fund to fund, we have developed a tool to help you compare how sales loads, fees, commissions, and other fund expenses can reduce returns. Even small differences in expenses can make a big difference in your return over time. |
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For example, let's say you invest $10,000 in two funds with annual returns of 10%. Fund A has total annual fund operating expenses of 0.18% and Fund B has expenses of 0.9%. Fund A, the lower expense fund, will grow to about $165,313.20 in 30 years. Fund B will only be worth $133,042.44. - a $32,270.76 difference. Using our analyzers, you can calculate the expenses of up to three funds or classes of a single fund at the same time. You can find the information you will need to input into the analyzer in a fund's prospectus. For ETFs, you also will need to know the typical commission your broker charges for buying or selling a stock or ETF. |
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FINRA Mutual Fund Expense Analyzer for Firms
FINRA is making its mutual fund expense analyzer available without charge to securities firms for use on their intranets as a tool for brokers or on their public Web sites for use by their customers. If your firm is looking for tools to assist brokers in comparing mutual fund expenses before making investment recommendations, FINRA's mutual fund expense analyzer may help. More Information |
