'The Arithmetic of 'All-In'Investment Expenses': Author Response

摘要

In his comment on my recent FAJ article, Joseph Matthews makes many valid points. Indeed, I've been writing about time horizons, risk tolerance, liquidity needs, mean regression, and asset allocation for as long as I've been writing-say, 60 years. In fact, I discussed each of these subjects in great detail in my first book, Bogle on Mutual Funds, published in 1993 (roughly around the time that Mr. Matthews began his career in finance). In my recent FAJ article, I took the next step-how to select equity mutual funds-focusing on the critical importance of fund expenses and comparing the long-term impact of the all-in costs of investing in low-cost equity index funds with that of the all-in costs of investing in actively managed funds.