Fund fees head south

Average fee for U.S. mutual funds and ETFs declined by about 8% last year, Morningstar data show.
APR 27, 2018

The price of investing is falling at a record rate. The average asset-weighted fee paid on U.S. mutual funds and exchange-traded funds declined by about 8% last year, to 52 cents per $100 invested, according to a report from Morningstar Inc. The drop was the biggest in the research firm's data going back to 2000. 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." (More: Morningstar: Fund fees continue to fall)

Latest News

Investors wins lawsuit against Atlanta B-D over tax shelter investment, potentially a first
Investors wins lawsuit against Atlanta B-D over tax shelter investment, potentially a first

InvestmentNews reported in 2017 that the IRS was scrutinizing the tax shelter land deals, called syndication conservation easements.

Pontera unveils non-discretionary advice tools in continued retirement platform buildout
Pontera unveils non-discretionary advice tools in continued retirement platform buildout

Advisors gain a second workflow for 401(k) guidance as the fintech expands beyond bulk rebalancing, backed by new policy research on advice access.

HSA balances hit record high, but are clients using them wrong?
HSA balances hit record high, but are clients using them wrong?

New data shows most people do not have enough saved to cover costs and are not fully utilizing their accounts.

Advisor moves: LPL, Cetera, Raymond James, NewEdge Wealth
Advisor moves: LPL, Cetera, Raymond James, NewEdge Wealth

Firms announce new recruits this week, with teams overseeing hundreds of millions in client assets switching affiliations.

Stratos Wealth adds $400M with RPI Financial Life Planners
Stratos Wealth adds $400M with RPI Financial Life Planners

It’s the 12th deal for Stratos since SEI's investment and follows 11 acquisitions worth $4.8B in 2025.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income