Please help settle a debate.
When looking at American Fund's Washington Mutual (AWSHX), they show a "total expense ratio" of .58% and a 12b1 fee of .24%.
Is the 12b1 IN ADDITION TO the .58%, or part of the .58%?
Thanks.
-HW "Skip" Weldon Columbia, SC
Skip, in any disclosure coming from an investment company, "total expense ratio" would include a 12b1, if there was one. The SEC requires that a fund to disclose the 12b1 as part of its disclosures about expenses. If AF is saying 0.24% and 0.58%, then the 0.24% is already included in the 0.58%. If someone else is reporting it - well who knows what some blogger might be saying? I'd check the prospectus and recent quarterly or annual report to confirm.
-Tad
Don't forget the 5.75% purchase fee.
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