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how to read a mutual fund spec sheet?
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it says expense ratio of 0.14%. what does it mean? essentially it means that they will take 0.14% of your money, regardless of the performance. this measures how much money the fund spends out of its assets on the regular management expenses. how much taxes will i be subject to this depends on your personal situation, not much to do with the fund (though investment/rebalancing policies may affect the taxable distributions). if you hold it in your ira - there will be no taxes at all. however, some funds do have measures of non-taxable distributions vs dividends vs. capital gains. not all the funds do that, and these are very rough estimates anyway. what is considered to be a reasonable expense ratio? that depends greatly on the investment policy. for passive index funds, 0.05-0.5% is a reasonable range, while for actively managed funds it can go up as much as 2% and higher. you need to compare to other funds with similar investment policies to see where your fund stands.
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