What's the highest ER fund available to you?

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Spinola
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What's the highest ER fund available to you?

Post by Spinola » Tue May 14, 2019 12:46 am

So far, I've found this one available in my TIAA IRA fund options with a ridiculously high ER... Naturally, I am not buying..
Nuveen Multi Asset Income Fund Class I (Mutual Funds) NMKIX

+4.17% :oops:
I am curious if there is anything more expensive out there?? Who is willing to give away such a big chunk of their returns?? How is this justified?

fennewaldaj
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Re: What's the highest ER fund available to you?

Post by fennewaldaj » Tue May 14, 2019 2:54 am

I just did a sort in fidelity and found the highest cost fund on there platform is an MLP fund with an expense of 8.26%

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southerndoc
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Re: What's the highest ER fund available to you?

Post by southerndoc » Tue May 14, 2019 5:58 am

Wow! I never knew these kind of funds event existed anymore.

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fizxman
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Re: What's the highest ER fund available to you?

Post by fizxman » Tue May 14, 2019 7:06 am

In my 401k plan at Fidelity, it's BSFIX at 1.04%.

For comparison purposes, the lowest is FXAIX at 0.015%.

columbia
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Re: What's the highest ER fund available to you?

Post by columbia » Tue May 14, 2019 7:16 am

Spinola wrote:
Tue May 14, 2019 12:46 am
So far, I've found this one available in my TIAA IRA fund options with a ridiculously high ER... Naturally, I am not buying..
Nuveen Multi Asset Income Fund Class I (Mutual Funds) NMKIX

+4.17% :oops:
I am curious if there is anything more expensive out there?? Who is willing to give away such a big chunk of their returns?? How is this justified?
My TIAA account has some active funds north of 1%, but...yikes!

wtjbatman
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Re: What's the highest ER fund available to you?

Post by wtjbatman » Tue May 14, 2019 7:20 am

Spinola wrote:
Tue May 14, 2019 12:46 am
So far, I've found this one available in my TIAA IRA fund options with a ridiculously high ER... Naturally, I am not buying..
Nuveen Multi Asset Income Fund Class I (Mutual Funds) NMKIX

+4.17% :oops:
I am curious if there is anything more expensive out there?? Who is willing to give away such a big chunk of their returns?? How is this justified?
So I googled that fund, because I just had to read more about it. From the Fund's page:
Effective 17 May 2019 the Nuveen Multi-Asset Income Fund will be liquidated. On 30 April 2019 the Fund will be closed to new purchases, except for investments by defined contribution retirement plans that have existing fund accounts and dividend reinvestments. Please see the prospectus for more information.
I wonder why? 8-)

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jeffyscott
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Re: What's the highest ER fund available to you?

Post by jeffyscott » Tue May 14, 2019 7:29 am

How about PGIM QMA Large-Cap Core Equity PLUS Fund-Class A (PQMAX) with gross expense ratio of 203.49% :wink:. That's not a real ER, as net is only 1.67%, it must be a new fund with small asset base.

For an apparently real ER, highest I see is 8.95% for American Growth Fund Series One Class B (AMRBX). It's been in existence since 1958 but has only $17 million in assets.

Oh wait, they have a new Cannabis focused fund American Growth Fund Series Two Class E (AMREX), with ER over 15%. https://www.newcannabisventures.com/can ... ling-fast/
Time is your friend; impulse is your enemy. - John C. Bogle

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Nate79
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Re: What's the highest ER fund available to you?

Post by Nate79 » Tue May 14, 2019 7:48 am

wtjbatman wrote:
Tue May 14, 2019 7:20 am
Spinola wrote:
Tue May 14, 2019 12:46 am
So far, I've found this one available in my TIAA IRA fund options with a ridiculously high ER... Naturally, I am not buying..
Nuveen Multi Asset Income Fund Class I (Mutual Funds) NMKIX

+4.17% :oops:
I am curious if there is anything more expensive out there?? Who is willing to give away such a big chunk of their returns?? How is this justified?
So I googled that fund, because I just had to read more about it. From the Fund's page:
Effective 17 May 2019 the Nuveen Multi-Asset Income Fund will be liquidated. On 30 April 2019 the Fund will be closed to new purchases, except for investments by defined contribution retirement plans that have existing fund accounts and dividend reinvestments. Please see the prospectus for more information.
I wonder why? 8-)
From the fund's page the net ER was actually 0.67% as the company was subsidizing the expenses. So the actual ER was not that high. (true for all the share classes of the fund)

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jeffyscott
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Re: What's the highest ER fund available to you?

Post by jeffyscott » Tue May 14, 2019 8:10 am

There are also ETFs with stratospheric ERs, VanEck Vectors BDC Income ETF (BIZD) at 9.41% net expense ratio is the worst I see. They report 9% of that as "acquired fund fees", though. The Schwab screener comes up with 173 ETfs with net ER over 1%.
Time is your friend; impulse is your enemy. - John C. Bogle

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Spinola
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Re: What's the highest ER fund available to you?

Post by Spinola » Tue May 14, 2019 2:24 pm

These are some real eye-bulging ERs... Yikes. Bogeleheads are very familiar with who has the lowest ERs, Fidelity 0 funds, VG 0.03 etc..funds, etc.. but the extreme opposite is surprising and a far less trodden trail.. For good reason. I have to wonder who actually invests in these funds? Unwitting retail customers? Do they really "get what you pay for"?

Vanguard Fan 1367
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Re: What's the highest ER fund available to you?

Post by Vanguard Fan 1367 » Tue May 14, 2019 2:56 pm

back in the 1980s when I knew nothing about investing someone came by the house and offered mutual funds with a 25 percent front end load. I don't know if this was legal or not but thankfully I didn't buy from him.

HawkeyePierce
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Re: What's the highest ER fund available to you?

Post by HawkeyePierce » Tue May 14, 2019 3:21 pm

PIMCO Income Institutional at 0.74% is the highest ER in my 401k.

The lowest is Vanguard's S&P500 Institutional fund at 0.035%.

Altogether not too bad. With institutional shares available of Vanguard's S&P500 and total international stock funds and admiral shares of their total bond fund, I've never even really looked at the other funds in my 401k.

azanon
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Re: What's the highest ER fund available to you?

Post by azanon » Tue May 14, 2019 4:08 pm

I don't understand why the SEC isn't doing something about a few of those. Those north of 4% ER are outright criminal IMO.

Cody6136
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Re: What's the highest ER fund available to you?

Post by Cody6136 » Tue May 14, 2019 6:09 pm

Spinola wrote:
Tue May 14, 2019 12:46 am
So far, I've found this one available in my TIAA IRA fund options with a ridiculously high ER... Naturally, I am not buying..
Nuveen Multi Asset Income Fund Class I (Mutual Funds) NMKIX

+4.17% :oops:
I am curious if there is anything more expensive out there?? Who is willing to give away such a big chunk of their returns?? How is this justified?

My TIAA options are a smorgasboard of expensive choices. That's why I'm not a big fan of this organization.

I'm trying to educate my co-workers but they tell me:

Multi Asset sounds like diversified
Income sounds like money.

I'm not making much headway here and it's disturbing. I'm like the obnoxious non-smoker running around with the patch.

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