More Hidden Costs of Mutual Funds
Trading costs for mutual funds are typically not disclosed and higher than you might think. That's the finding of two recent studies profiled in the WSJ article That Fund's Total Expenses Area Higher Than You Think.
A study of the top 100 mutual funds found that the median trading costs were 0.66% and the highest quintile averaged 1.99%.
A much larger study of U.S. stock funds found average trading costs of 1.44% overall and 2.96% in the top quintile.
The trading costs are in addition to the management fees, marketing expenses, sales loads and exit fees that funds charge investors.
About Keeping Up:
Part news analysis, part commentary, ETF MarketPro's Keeping Up column goes beyond the headlines to give ETF investors new insights into investing with ETFs.
Topics range from market movements and underlying sector trends to ETF industry changes, fundamental investing concepts and ETF investing themes.
ETF Investor Insights
Free newsletter with latest news, investing ideas, case studies and upcoming events of interest to ETF investors
