Bringing you live news and features since 2006 

Money and calculator

Mutual funds, ETFs and hedge funds slash fees


Mutual funds, exchange-traded funds and even hedge funds have reduced the fees they charge clients in light of the weakened economy, according to

Some of the fee cuts are temporary measure aimed at attracting recession sales, but believes the trend is likely to continue.

Now more than ever, the internet is making price comparison easy allowing investors to search for bargains whenever they shop.
Charles Schwab is leading the pack with aggressive price cuts, recently introducing a group of low-cost ETFs. In addition, Schwab is allowing investors to trade new ETFs for free, which says is a bold stroke since investors typically pay standard brokerage commissions to buy and sell ETFs.
Hedge funds have also been reducing expense ratios. Typically, hedge funds have charged annual management fees of 2.0 per cent, with performance and incentive fees on top of that. Many clients, dissatisfied with the extra fees, have been negotiating lower costs, pushing the average annual fee to 1.63 per cent, according to consulting firm Preqin.
While mutual fund investors have little room to negotiate, many are benefiting from lower fees in the other investment vehicles. The average dollar invested in a domestic equity fund now faces an expense ratio of 0.78 per cent—five years ago, that number was 0.91 per cent, according to Morningstar. The decline is partially due to cuts at big funds, which have been reducing their expense ratios by 20 basis points on average., through its AdvisorShares Investments subsidiary, is creating actively managed ETFs, such as the Dent Tactical ETF, to take advantage of the rapidly growing ETF business.

Latest News

EFAMA has published its latest Monthly Statistical Release for May 2024...
Solactive writes that it has expanded its collaboration with Kiwoom Asset Management by providing the underlying indices to the KIWOOM..
MSCI has announced the launch of MSCI Private Capital Indexes, writing that with growing investor interest in private markets, high..
Matteo Greco, Research Analyst at Fineqia International, writes that bitcoin (BTC) ended the week at approximately USD68,150, marking a 12.1..

Related Articles

Scott Kefer, VictoryEx Capital Holdings
Bailey McCann writes that active ETFs are capturing investor interest, according to the latest data from Morningstar, which finds that...
Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by