Monday, July 1, 2013

Investors' Cost Consciousness on the Rise


A recent Vanguard analysis of Morningstar data reveals that funds with lower expense ratios increasingly are receiving a greater share of investor dollars.  Vanguard's "whitepaper" about its analysis is here:  Costs matter: Are fund investors voting with their feet?

401(k) plan sponsors and plan participants are gravitating to low cost funds, too:  Mutual fund costs for 401(k) plans still dropping.  A new Department of Labor fees disclosure rule and pending lawsuits may also be contributing to the positive trends affecting 401(k) plans:  see Limiting the 401(k) Finder's Fee.

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