The Impossible Sale: An S&P 500 Index Funds at 60bps with a 3% Sales Load

///The Impossible Sale: An S&P 500 Index Funds at 60bps with a 3% Sales Load

The Impossible Sale: An S&P 500 Index Funds at 60bps with a 3% Sales Load

By | 2015-04-14T11:28:09+00:00 April 14th, 2015|Uncategorized|Comments Off on The Impossible Sale: An S&P 500 Index Funds at 60bps with a 3% Sales Load
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(Last Updated On: April 14, 2015)

Got a great story on an S&P 500 index fund that you won’t believe.

Consider a S&P 500 Index Fund with $2B in assets that charges a 60bps management fee and a 3% front-end sales charge.

Think this is impossible? Think again…this exists in the real-world!!!

fee

The New York Life Mainstay S&P 500 Index Fund is an amazing case study in the power of a motivated distribution channel.

Here is the performance since inception relative to SPY from 2/2004 to 3/2015:

sp

The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained. Indexes are unmanaged, do not reflect management or trading fees, and one cannot invest directly in an index. Additional information regarding the construction of these results is available upon request.

 

 

 


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About the Author:

After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes, ETF.com, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.
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