From: beliavsky@aol.com
Newsgroups: misc.invest.financial-plan
Subject: Re: Expense ratios
Date: Fri, 4 Mar 2005 05:36:05 CST
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Tom B. wrote:

> Exp. Ratio      5-year return
> 2%+                    .61
> 1.8-2%                1.77
> 1.4-1.8%             3.54
> 1.1-1.4%             3.84
> .4-1.1%               3.23

Could not one interpret the expense ratio statistics as saying that
expense ratios do not really matter, as long as they are not
"excessive" (above 1.8%)? I do not actually believe this but am just
commenting on your statistics. Have the high-expense ratio funds been
concentrated in areas such as small cap stocks that have outperformed
other asset classes? Maybe the statistics should be computed by sector.