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REDDIT
When comparing ETFs, can a high expense ratio be overlooked if the growth in one ETF is greater than the expense ratio difference between the two?
When comparing two ETFs, how important is expense ratio if the difference between the two ETFs is greater than the difference in expense ratios? I’ll try to provide a simple example below.
ETF1: E/R=.05% | 1yr return: 2% | 3yr:4%
ETF2: E/R=.01% | 1yr return: 1% | 3yr:2%
ETF1 made a greater profit than the .04 difference. Am I correct in assuming that in the long run ETF1 would return more than ETF2?
If you want the specific stocks I’m comparing, it’s between RERGX & VEMIX.