The Most Famous Fund Manager’s Fund Charges You 0.74%. The 401(k) Version Charges 0.45%

Will Danoff's Contrafund (FCNTX) charges a 0.74% expense ratio, while Fidelity offers a cheaper version (FLCNX K6) with the same 0.45% expense ratio for investors with access through eligible workplace plans. This 29-basis-point difference can save a $100,000 Contrafund position roughly $290 annually in fund expenses while maintaining the same active management strategy.

The K6 share class, available in many 401(k) plans, provides the same holdings and strategy as FCNTX but at a significantly lower cost. For those without K6 access, a passive alternative like the Schwab U.S. Large-Cap Growth ETF (SCHG) with a 0.04% expense ratio offers similar exposures to large-cap growth stocks, including key players like NVIDIA, Apple, and Advanced Micro Devices.

While SCHG has outperformed FCNTX over the long term, it lacks Danoff's concentrated, off-benchmark stock picks. Investors should consider the fee differential and historical performance when deciding whether to switch from FCNTX to a cheaper alternative like FLCNX or SCHG.