European mutual funds fees are almost twice as high as U.S. fees as portfolios in the states benefit from economies of scale in a unified market, according to research firm Fitzrovia, part of Lipper, Reuters reports.

The average total expense ratio on a cross-border European equity fund is 1.79%, whereas the average U.S. fund sports a fee of 0.92%. And a British fund charges an average of 1.68%. The gap is similar with regards to expense ratios on bond funds, as well, with the average U.S. fixed income portfolio charging 0.86%, versus 1.35% on a cross-border, fixed-income European fund and 1.24% on a UK fund.

Two of the main factors driving up fees in Europe are a fractured regulatory environment and smaller fund sizes.

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