The choppy start to 2016 means it likely has been hard to persuade clients to move money out of money market funds, given their relative safety and low costs, leaving advisors on the hunt for the best choices in that group.
The 18 funds we analyzed using Morningstar data have three-year annualized returns between .08% and .14%. Their expense ratios, on the other hand, range between 10 and 20 basis points. Returns, however, are typically calculated net of expenses, and when expenses do exceed yield, some fund managers will offer a waiver or reimbursement of fees.
There may not be much left to the returns, but these fund investments will likely offer clients the safe haven they are looking for. Click here
to see a single-page version.--Andrew Shilling and Ralph R. Ortega