Hi, and thanks for your help. Ignore for the moment that TWCIX (https://www.morningstar.com/funds/xnas/twcix/quote.html) and FXAIX (https://www.morningstar.com/funds/xnas/fxaix/quote.html) are different types of funds. I'm using them as examples for my questions.
Fact: TWCIX has an expense ratio of 98%. FXAIX has an expense ratio of .02%. Call it a 1% difference. I'm using the Morningstar links (above) for my questions.
- On the "performance" tab, the 3-year "trailing total returns" for TWCIX is 18.49. For FXAIX it is 16.52. Is this after the expenses are taken out (ie even with expenses TWCIX did 2% better) or do I take expenses off of this?
- On the "performance" tab, there is a sub-tab for investor returns which lists "trailing investor returns." What does this mean? For 3-year for TWCIX it says 14.89% investor returns, and 15.29% total return. FXAIX on the other hand only has total return of 14.01%.
- Taxes. Can someone explain the "tax" tab to me? For TWCIX it shows 3-year pretax return 15.29% and tax-adjusted 13.62%. It gives the number 52.52 for "potential cap gain exposure." For FXAIX it shows 14.01% pretax return, 13.14% tax adjusted return, with 7.63 for "potential cap gains exposure."
The long and the short of it is this: what is the best way to compare apples to apples in terms how money in one fund did compared to putting that money in another fund after consideration of expense ratio and taxes?
Thanks
Submitted February 20, 2019 at 08:45AM by Tomrank https://ift.tt/2Nfl5Vn
