Analysis of information sources in references of the Wikipedia article "Basis point" in English language version.
Investors also refer to basis points when discussing the cost of mutual funds and exchange-traded funds. Typically, fund expenses are expressed as an annual percentage of assets. For instance, the "Investor" share class of Vanguard Total Stock Market Index, the largest stock mutual fund, has expenses of 0.17%, or 17 basis points.
When people compare fund expenses, they measure the difference in basis points. A fund with expenses of 0.45% is said to be five basis points more expensive than one with a 0.40% ratio.
Investors also refer to basis points when discussing the cost of mutual funds and exchange-traded funds. Typically, fund expenses are expressed as an annual percentage of assets. For instance, the "Investor" share class of Vanguard Total Stock Market Index, the largest stock mutual fund, has expenses of 0.17%, or 17 basis points.
When people compare fund expenses, they measure the difference in basis points. A fund with expenses of 0.45% is said to be five basis points more expensive than one with a 0.40% ratio.
