If an index fund has an annual return of 10% and a expense ratio of 0.5% can I expect a return of 9.5%?

Question

I am trying to decide which type of fund to invest in. One with a higher return rate but also relatively high fees, or a fund with slightly lower returns, but lower fees also. So lets say there are 2 funds, one has a 11% annual return rate and a 0.7% expense ratio, and the other has a 10% annual return rate and a 0.3% expense ratio, which one should I invest in for the long term?

Answer 1

The higher return.

Answer 2

Are investments really a good idea currently?

Maybe it's just me.... idk.

Answer 3

The return rate that you are told is what the return rate WAS in the PAST, which does not affect you unless you already invested in the fund IN THE PAST.

The only thing that will affect you if your first investment in the fund is in the FUTURE is what the return rate will be IN THE FUTURE.

Counterintuively, the funds with the highest return rates IN THE PAST generally are the most likely to have the LOWEST return rates in the FUTURE, probably because they are the ones that take the most risks.  (I am not making up this theory.  Funds that receive 5 stars from Morningstar in any one year are MORE likely to be rated only 1 star the following year than funds that were rated 3 stars in the first year are to be rated 1 in the second.)