When the markets are regularly putting points on the board, it’s probably time to bring clients back to the boring, but important, matter of expenses.
John Bogle, the founder of Vanguard, famously said that a 2% expense ratio (high in today’s world) can cost investors as much as two-thirds of their returns, assuming market returns of 7% over the course of 50 years.
Conscious of the pernicious effects of fees, we researched the funds that offered solid performance at a low price. We screened based on these three requirements: 1) three-year returns of 10% or more, 2) expense ratios of 10 basis points or less, and 3) assets of $500 million or more.
The funds are ranked based on three-year returns. All data from Morningstar.