Index funds are known for low expenses

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.

0.13 *
Water

DILUTION FROM COMPENSATION PLANS

The annual dilution of company shares issued for executive compensation can increase expenses an extra 2.5%.

2.5

BUYBACKS TO OFFSET DILUTION

Ongoing company share buybacks to offset dilution can increase expenses up to an additional 1.6%.

1.6

INDEX FUNDS LOOK THROUGH EXPENSES AVERAGE A TOTAL OF 4.2%

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 CONCENTRATE RISK
RATHER THAN DIVERSIFY IT.

Only 10 stocks have driven market performance the past 16 months^.

62 of Index
Performance

"FANG and Friends"**

These 10 stocks have an average P/E ratio of over 180 1 , represent 2% of the S&P 500 and generated 62% of the Index’s return. 2

Introducing FANG and Friends

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.

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*Average fee, based on the following index funds: Blackrock 'Core', State Street Average, and Vanguard Average.
^ 1/1/15-4/30/2016
** "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