- Weighting fees by size of the fund's assets, a Morningstar study found investors paid average expenses of 0.57% in 2016, down from 0.65% three years earlier.
- Price wars and the popularity of passive investing via ETFs are the obvious reasons. Or are they?
- Moving deeper into the study finds the average expense ratio of the largest 2K funds from 2013 (which accounted for 85% of AUM) was 0.76% in 2016 - the same as the previous two years.
- The upshot: The fund industry isn't cutting fees on the most widely held funds, but instead investors are migrating away from the more expensive offerings.
- Interested parties: BlackRock (NYSE:BLK), Franklin Resources (NYSE:BEN), Gamco (NYSE:GBL), Janus (NYSE:JNS), Invesco (NYSE:IVZ), AlliianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR)
- Now read: Invesco Deserves A Spot In Your Dividend Growth Portfolio
Original article