swvxx: should yield be lower than ER?

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duricka
Posts: 43
Joined: Sat Oct 28, 2017 9:18 am

swvxx: should yield be lower than ER?

Post by duricka » Fri May 22, 2020 11:44 am

Current data is: https://www.schwabfunds.com/products/swvxx
7-Day Yield (with waivers) As of 05/21/2020 is 0.27%
7-Day Yield (without waivers) As of 05/21/2020 is 0.18%
Gross Expense Ratio 0.420%
Net Expense Ratio 0.340%

Should yield be smaller than expense ratio?

alex_686
Posts: 6171
Joined: Mon Feb 09, 2015 2:39 pm

Re: swvxx: should yield be lower than ER?

Post by alex_686 » Fri May 22, 2020 11:52 am

Why not in this low interest rate environment?

Note, reported yield is gross returns less expenses. So a positive yield implies that one will be making money.

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