Question about Target Date Fund Expense Ratios - Do they "include" the expense ratios of the underlying funds, or is it on top of the expense ratios charged by the underlying funds?

Let's say I own a target data 2050 Fund and the expense ratio is 1%.

That 2050 Fund is comprised of Domestic Stock Fund A, International Stock Fund B, and Bond Fund C. Each of these individual stock/bond funds have an expense ratio of .5%

Am I "losing" 1.5% of my money a year to expenses? (1% to the target date plus .5% to the underlying funds).

Or am I losing 1% of my money to expenses? (i.e. is the 0.5% "rolled into" the target date fund expense ratio?)

Submitted July 18, 2017 at 12:01PM by zamundan http://ift.tt/2vyjfoo