What do we consider to be a high portfolio expense ratio?

Yeah. -Like SP500 index fund shouldn't be above .05%, but then if you start digging down - sector-specific funds are reasonably going to cost more, foreign-holding funds are going to be significantly more, leveraged funds are going to be significantly more, and actively-managed funds are going to be much more.

It's completely understandable these will cost more, but it's still important to factor these fees in. If you have a stake in a fund actively managing investments in... Idunno... shale sand companies specifically in Madagascar and Tanzania, and they're very reputable -- I mean, that could reasonably cost 1.5% or more in annual fees, but you still need to ask yourself if that exposure to smart, reputable people managing shale sand investments in relatively minor countries is still worth that 1.5% annual cost. Maybe it is, maybe it isn't, but you'll need more conviction in the bet vs. a .05% fee fund, or really need that diversification.

/r/investing Thread Parent