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Fund Investors Believe That Cheap Is Better. But That’s Not Always The Case

TedTed
in Fund Discussions
FYI: It took some three decades and a financial crisis, but the evangelicals of index investing finally got their message across—low fees lead to better performance.

The past decade has seen unprecedented amounts of money going into index funds. And not just any index funds, but the very cheapest: More than 97% of flows into the $4 trillion exchange-traded fund industry last year went to ETFs that charge 0.2% or less, Bloomberg data shows.
Regards,
Ted
https://www.barrons.com/articles/when-cheap-doesnt-yield-better-returns-51552702025?mod=hp_DAY_2

Comments

  • bartab
    I would prefer less expensive. Cheaper is such a horrible term.
  • Sven
    From consumer perspective I see nothing wrong with competition that ultimately benefit the investors. Fidelity is now offer equivalent index funds with even lower fees than those from Vanguard. Stroll lower on the webpage - Fidelity also lowered their fees on their ETFs.
    @Ted, looks like Barrons finally close down on the workaround to read their paid articles.
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