Excerpted from Bogle on Mutual Funds by John C. Bogle, pages 82-83

Gross dividend yield. The gross dividend yield is a significant indicator of mutual fund investment characteristics. Among stock funds, gross yields tend to be higher, for example, in value-oriented funds and lower in growth funds, hardly an unexpected result. However, most fund statistical services present yield improperly for comparative purposes. The reported net yield is after fund expenses, while a fund's investment characteristics are reflected by its gross yield before expenses. The dramatic difference is seen in the hypothetical illustration in Table 4-4.

YAHOO! FINANCE TIP Yahoo! Finance reports a mutual fund's yield percentage on its profile page. For an example, see VFINX's profile page.

As you can see, the net yields of the two funds are precisely the same. But the 4.0% gross yield of the value fund is fully 60% higher than the 2.5% gross yield of the growth fund. This range is about what might be expected in a marketplace in which the average yield is 3.2%. Clearly, the gross yield is the more reliable differentiator of a fund's investment philosophy.