Mutual fund and ETF fees drop at record pace
The price of investing is falling at a record rate.
The average asset-weighted fee paid on U.S. mutual funds and ETFs declined by about 8% to 52 cents per $100 invested last year, according to a report from Morningstar. The drop was the biggest in the research firm’s data going back to 2000.
The firm’s 20-basis-point take will drop, says CEO Walt Bettinger.September 28
In price wars wars, the firm bolts ahead in the race to zero by nearly tripling its roster of commission-free funds.October 19
The cheapest 20% of funds, a group dominated by passive products, attracted almost $1 trillion in fresh customer cash in 2017, while the rest of the industry suffered net outflows of about $250 billion, the report found.
“The message investors are sending is crystal clear,” Morningstar analyst Patricia Oey said in a statement. “Cost counts.”