Do Index funds accurately reflect the expenses investors pay?
What you think you pay
People who invest in these funds believe their expenses to be small and manageable.
DILUTION FROM COMPENSATION PLANS
The annual dilution of company shares issued for executive compensation can increase expenses an extra 2.5%.
BUYBACKS TO OFFSET DILUTION
Ongoing company share buybacks to offset dilution can increase expenses up to an additional 1.6%.
INDEX FUNDS LOOK THROUGH EXPENSES AVERAGE A TOTAL OF 4.2%
Look through expenses are higher than advertised fees.
95% of the time Index Funds vote in favor of executive compensation
creating ever increasing look through expenses.
Learn More About Hidden Expenses
INDEX FUNDS HAVE BEEN SOLD AS BOTH SAFE AND INEXPENSIVE INVESTMENTS. WE BELIEVE THEY ARE NEITHER. THESE FUNDS ARE RISKY DUE TO THE CONCENTRATION IN FANG AND FRIENDS. THEY'RE NOT INEXPENSIVE DUE TO THE COSTS OF LOOK THROUGH EXPENSES.
** "FANG and Friends": Alphabet, Amazon, Apple, eBay, Facebook, Microsoft, Netflix, Priceline, Salesforce, Starbucks.
1As of April 30, 2016
2 Period from January 1, 2015 to April 30, 2016