Glossary
401(k) fees. The cost of operating and administering a 401(k) plan; in addition to annual operating expense of a mutual fund, for example; passed on to plan participants.
Alpha. Risk-adjusted measure of an investment’s performance against a benchmark.
Annual operating expenses. ETFs and mutual funds are managed by investment professionals who incur costs for their services that are passed on to investors as fees deducted from the fund’s assets; can include management fees, 12b-1 fees, and other expenses; often referred to as a percentage of the fund’s assets—the fund’s expense ratio (identified in the fund’s prospectus as the total annual fund operating expenses).
Asset-weighted index. A stock index based on or weighted by the underlying ...
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