Where the figures come from
We read each fee from one of three places: the fund company's own fund page; its fact sheet, where the page can't be read; or the fund's prospectus, filed with the US Securities and Exchange Commission and published on EDGAR. The source of every figure is linked beside it.
Gross and net
The expense ratio is the yearly fee a fund takes from its assets, shown as a percentage. Some fund companies show a gross figure, before any fee waiver, and some show a net figure, after it. We record the figure the source shows and say which kind it is.
Two kinds of date
Read on is the day we read a figure from its source. Effective, for a fee change, is the date the fund company says the new fee applies. A change can be announced on one day and take effect on another, and we show both when the company gives both.
Basis points
Fees are often quoted in basis points. One basis point is 0.01%, so a fee of 0.03% is 3 basis points, which comes to $3 a year for every $10,000 invested.
How the cost estimate works
The calculator on each fund page assumes a steady yearly return, 5% unless you change it, and a fee that stays the same. Those are the assumptions behind the cost example in every fund prospectus. Each year, the fee is charged on the average of the balance at the start of the year and the balance after that year's return. The estimate leaves out taxes, trading costs and broker fees.
What the expense ratio leaves out
An expense ratio doesn't include trading commissions, the gap between buying and selling prices, taxes, or any account fees a broker charges.
Corrections
If a figure looks wrong, email hello@expenseratiohistory.com with the fund and where you saw a different number. We check it against the fund company's own documents and correct it.