You might think the widening adoption of low-cost ETFS are driving prices down, or maybe it’s the glasnost-style push for openness that’s causing a sense that fund fees and expenses are falling. But the Investment Company Institute cites a number of other reasons in its April Research Perspective, and puts hard numbers behind the trend.
ICI reports that expense ratios incurred by investors in long-term mutual funds declined in last year. Equity fund investors, on average, paid 77 basis points (0.77%) in expenses, down 2 basis points from 2011. Expenses of bond funds declined 1 basis point to 61 basis points.