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Is a S&P 500 index fund with .02 pct. expense ratio in MFW cheaper than the C fund?
- Thread starter flalaw97
- Start date
flalaw97
Member
Re: Is a S&P 500 index fund with .02% expense ratio in MFW cheaper than the C fund?
The $55 and $95 are annual fees so, assuming you are not spreading a portion of that cost onto any other funds purchased through the MFW, then the only fee that you shed is the transaction fee if you make no trades. Of course that fixed $150 becomes a smaller percentage if you have more in the accout so the percentage would decrease with gains over the years (or if you added more funds). As long as you make no trades, it seems like a straightforward improvement over the C fund as long as Schwab keeps the expense ratio at .02%
The $55 and $95 are annual fees so, assuming you are not spreading a portion of that cost onto any other funds purchased through the MFW, then the only fee that you shed is the transaction fee if you make no trades. Of course that fixed $150 becomes a smaller percentage if you have more in the accout so the percentage would decrease with gains over the years (or if you added more funds). As long as you make no trades, it seems like a straightforward improvement over the C fund as long as Schwab keeps the expense ratio at .02%
Re: Is a S&P 500 index fund with .02% expense ratio in MFW cheaper than the C fund?
Or would it be 0.02% in subsequent years based on what you posted earlier?
Or would it be 0.02% in subsequent years based on what you posted earlier?
Re: Is a S&P 500 index fund with .02% expense ratio in MFW cheaper than the C fund?
Oops, sorry. Decimal problem. .043% vs. .038%.
Oops, sorry. Decimal problem. .043% vs. .038%.
flalaw97
Member
Is a S&P 500 index fund with .02% expense ratio in MFW cheaper than the C fund?
So if I am reading the TSP site correctly, the total expense ratio for the C fund is .043%. If the Schwab S&P 500 index fund (SWPPX) shows a .02% expense ratio, what additional fees do I have to consider to determine if it would be cheaper to buy and hold C fund or SWPPX in the mutual fund window? TSP mutual fund window description lists $55 annual fee for using MFW, $95 annual maintenance fee and $28.75 per trade fee. So a onetime transfer of $100K into MFW to buy $100K of SWPPX would result in $178.75 in fees plus the .02% expense ratio. Isn't that going to be less than .043% of my C fund investment? This assumes I am not moving it in and out (not even just 2x per month like C fund) as those moves would cost. But for a buy and hold person, does it make sense to move a chunk of your buy and hold shares from C fund to a low expense ratio fund that mimics C fund performance in the Mutual Fund Window?
So if I am reading the TSP site correctly, the total expense ratio for the C fund is .043%. If the Schwab S&P 500 index fund (SWPPX) shows a .02% expense ratio, what additional fees do I have to consider to determine if it would be cheaper to buy and hold C fund or SWPPX in the mutual fund window? TSP mutual fund window description lists $55 annual fee for using MFW, $95 annual maintenance fee and $28.75 per trade fee. So a onetime transfer of $100K into MFW to buy $100K of SWPPX would result in $178.75 in fees plus the .02% expense ratio. Isn't that going to be less than .043% of my C fund investment? This assumes I am not moving it in and out (not even just 2x per month like C fund) as those moves would cost. But for a buy and hold person, does it make sense to move a chunk of your buy and hold shares from C fund to a low expense ratio fund that mimics C fund performance in the Mutual Fund Window?
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