Listen "Fund Fee Update"
Episode Synopsis
I came across some updated mutual fund and ETF fee information from Morgan Stanley, so I thought I would update those here. To complete the picture, I’ve included fixed income data from Barclays.
As you can see, for every major asset class, average internal fund management fees for ETFs are significantly lower than is the case for actively managed mutual funds. Actively managed U.S. equity mutual funds, for example, carry fees five times higher than U.S. equity ETFs, on average.
Actively-Managed Funds
Indexed Mutual Funds
Exchange-Traded Funds
U.S. Equities
1.45%
0.70%
0.29%
Int’l Equities
1.67%
0.95%
0.48%
Fixed Income
1.03%
0.43%
0.24%
As you can see, for every major asset class, average internal fund management fees for ETFs are significantly lower than is the case for actively managed mutual funds. Actively managed U.S. equity mutual funds, for example, carry fees five times higher than U.S. equity ETFs, on average.
Actively-Managed Funds
Indexed Mutual Funds
Exchange-Traded Funds
U.S. Equities
1.45%
0.70%
0.29%
Int’l Equities
1.67%
0.95%
0.48%
Fixed Income
1.03%
0.43%
0.24%
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