I'm looking at 2 small/mid cap funds, one of which is VG Extended Market Index Fund (VEXMX). The other is Oppenheimer Main St Sm & Mid Cap (OPMYX). I'm comparing these because these are the small/mid cap choices in my Ohio 529 plan.
My correlation analysis shows they correlate within 96%. For similar periods (monthly, back to 8/1/2000), OPMYX averaged 10.52% (the monthly average X 12), while VEXMX averaged 8.49%
The listed annual asset-based fees in the 529 plan for OPMYX is .83%. For VEXMX it's 0.30%
So... to me .... it looks like OPMYX is worth the expense. Right? It's 2 percent better. Even if it's expenses were 2% or 3%, it would STILL be worth it. Yes? Sometimes I have a hard time wrapping my head around the "less is more" philosophy regarding fees here. It's all accounted for in the NAV, right? Expect loads. Loads are NOT included in the NAV. Yes? But as far as annual ER is concerned, it's the returns that matters. Is that right?