Mutual Fund Expense Ratios Continue to Decline

ICI puts hard numbers behind a general sense of lower costs.

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.    

About the Author

John Sullivan

John Sullivan

John Sullivan was Editor in Chief of Investment Advisor magazine from 2010 to 2013. Sullivan is the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.


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