Alpha determines how much return you can expect from your mutual fund investment. When you look at the Alpha value of a mutual fund, you can estimate how much return the fund can potentially generate. Although a higher Alpha number can signal higher returns, it isn’t the only indicator to...
Once you've found the mutual fund you want, take a close look at the fees and costs. And remember, the relative importance of fees and costs depends on how you plan to use the fund in pursuit of your investment goals. Operating expense ratio (OER) ...
In addition, I find that fund performance and load fees are strongly and negatively related, probably due to higher total transaction costs for load funds. Holding expense ratios constant, load funds underperform no-load funds by approximately 80 basis points per year. (This figure ignores the ...
Large mutual funds can save money and boost returns, but they may have higher expense ratios than low-cost index funds and ETFs. Many investors focus on total returns when comparing one fund against another. While it's good to know how much your money can grow, the size of the fund can...
Product FeesAside from management fees, expenses often include additional shareholder servicing costs; total expenses vary by share classExpense ratios tend to have fewer layers of fees and no share classes; typically do not include shareholder servicing costs ...
(May-June2012) “Investment Management Fees Are (Much) Higher Than You Think.” Financial Analysts Journal, 68 (3), 4–6. 3. Kinnel, Russel. (August 2010) “How Expense Ratios and Star Ratings Predict Success.” Morningstar Fund Investor, 18(12), 1–5. 4. Kinnel, Russel....
2 Abstract This paper examines the relationship between mutual fund directors’ compensation and fund holdings, and fund expense ratios. Previous papers have found a positive relationship between expense ratios and director compensation (e.g., Tufano and Sevick (1997) in open-end mutual funds and ...
2000-2023, by fund management type Premium Statistic Expense ratios of mutual fund investors in the U.S. 2000-2023, by fund type Report this content If this report contains a copyright violation, please let us know. Note that you will leave this page when you click the link. ...
Zhang, A., 2007, "Mutual fund expense ratios in market equilibrium," working paper, University of ArizonaZhang, Andrew, 2007, Mutual fund expense ratios in market equilibrium, working paper, University of Arizona.Zhang, Andrew, 2007, Mutual fund expense ratios in market equilibrium, University ...
Some mutual funds have more active management so ETF expense ratios are usually lower.14 Mutual Fund vs. ETF Redemption Example Suppose an investor redeems $50,000 from a traditional Standard & Poor's 500 Index (S&P 500) fund. The fund must sell $50,000 in stock to pay the investor...