Competition has led expense ratios to fall dramatically over the past several years. A reasonable expense ratio for an actively managed portfolio is about 0.5% to 0.75%, while an expense ratio greater than 1.5% is typically considered high these days. For passive funds, the average expense ratio is about 0.12%.
Overall Rating
Morningstar has awarded this fund 5 stars based on its risk-adjusted performance compared to the 1020 funds within its Morningstar Category.
Fidelity® Growth Company Fund has an expense ratio of 0.86 percent.
Mutual fund expense ratios can vary widely, typically ranging from 0.1% to over 2%. Low-cost index funds often have expense ratios below 0.5%, as they aim to track a specific market index and have a passive management style with lower turnover.
Fidelity® 500 Index Fund has an expense ratio of 0.02 percent.
Gross advisory fee applicable to accounts managed through Fidelity® Strategic Disciplines ranges from 0.20% to 0.49% and gross advisory fee applicable to accounts managed through Fidelity® Wealth Services ranges from 0.50%–1.04%, in each case based on a minimum investment of $2 million.
Vanguard's low fees can help you save * $28,574
As of December 31, 2023, Vanguard's average mutual fund and ETF expense ratio is 0.08%. Industry average mutual fund and ETF expense ratio: 0.44%. All averages are asset-weighted. Industry averages exclude Vanguard.
Vanguard and Fidelity are two investment firms with plenty to offer investors. Vanguard's status as a leader in terms of assets under management underlines its strong market history, while Fidelity's competitive pricing and flexibility make the firm a great choice for newcomers.
The Portfolio invests 100% of its assets in equity and commodity-related mutual funds. Performance of MA Aggressive Growth Portfolio depends on performance of the underlying Fidelity funds in which it invests and asset allocation changes that may occur within the Portfolio over time.
Expense ratios ranging from 0.5% to 0.75% are often considered to be low. Expense ratios of above 1.5% are very high and can quickly eat into your returns. Most actively managed mutual funds have expense ratios ranging from 0.5% to 1.5%, whereas most passively managed funds are in the range of 0.2% to 0.5%.
SPY is more expensive with a Total Expense Ratio (TER) of 0.0945%, versus 0.03% for VOO. SPY is up 28.31% year-to-date (YTD) with +$7.13B in YTD flows. VOO performs better with 28.36% YTD performance, and +$103.99B in YTD flows.
However, generally speaking, a healthy growth rate should exceed the overall growth rate of the economy or gross domestic product (GDP). Further to that, Harvard Business Review suggests that most companies should grow at a rate of between 10% and 25% per year.
Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high.
Gross expense ratio, as reported in a fund's prospectus, is the percentage of fund assets expected to be paid over a year for operating expenses, management fees, and interest and dividend expenses. Net expense ratio takes the gross and removes any contractual fee waivers and reimbursements.
What is a good expense ratio? Typically, ETFs have lower expense ratios than mutual funds. Generally, low-cost equity ETFs will have a net expense ratio of no more than 0.25%. Low-cost equity mutual funds will have expense ratios of 0.5% or lower.
Is FXAIX a Buy, Sell or Hold? Fidelity 500 Index Fund has a consensus rating of Moderate Buy which is based on 399 buy ratings, 103 hold ratings and 4 sell ratings.
Opt for direct mutual fund plans
Many mutual funds offer a direct plan option, which excludes distributor fees and commissions, leading to a lower expense ratio. By investing directly with the mutual fund company rather than through an intermediary, investors can reduce annual expenses and improve returns.
A high expense ratio can significantly impact your returns, and it pays for things like the management of the fund, marketing, advertising and any other costs associated with running the fund.