PR Newswire
CHICAGO, June 9, 2020
CHICAGO, June 9, 2020 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its annual fund fee study, which evaluates trends in the cost of U.S. open-end mutual funds and exchange-traded funds (ETFs)1. The study found that across U.S. funds, the asset-weighted average expense ratio dropped to 0.45% in 2019, compared to 0.48% in 2018. This six percent year-over-year decline is third largest recorded dating back to 1991.
"Investors are increasingly aware of the importance of minimizing investment costs, which has led them towards lower-cost funds and share classes. There has also been intensifying competition among asset managers, who have cut fees to appeal to cost-conscious investors," said Ben Johnson, Morningstar's director of ETF and passive strategies research. "Another factor has been changes in the way financial advice is delivered and paid for. As advisors move away from transaction-driven compensation models and toward fee-based ones, fund share classes that have fewer embedded advice or distribution costs are seeing more flows."
Key findings of the study include:
Access the 2019 U.S. Fund Fee Study here. A Fund Spy article on Morningstar.com summarizing key findings and trends is available here.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $179 billion in assets under advisement and management as of March 31, 2020. The Company has operations in 27 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar's Manager Research Group's current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund's or separately managed account's underlying securities' creditworthiness. This press release is for informational purposes only; references to securities or a separately managed account investment strategy in this press release should not be considered an offer or solicitation to buy or sell the securities or to invest in accordance with that strategy.
©2020 Morningstar, Inc. All rights reserved.
1 The study excludes money market funds and funds of funds.
Media Contact:
Rebecca Rogalski, +1 312 244-7771 or [email protected]
View original content to download multimedia:http://www.prnewswire.com/news-releases/morningstars-annual-fund-fee-study-finds-investors-saved-nearly-6-billion-in-fund-fees-in-2019-301072365.html
SOURCE Morningstar, Inc.
We use cookies to tailor your experience, measure site performance and present relevant offers and advertisements. By clicking ‘Accept’ or any content on this site, you agree that cookies can be placed on your browser. You can view our privacy policy to learn more.
If you would like to get more data, alerts and access to Real Vision videos, join us as an Insider Tracking Advantage Ultra member