What are your fund fees? If you don’t know, you should. Fund fees can impact your return over time. Luckily, they’re going down.

Fees Are Falling

A recent industrywide review by the Morningstar fund research organization found that, on an equal-weighted basis investors pay an average fee of 1.10% a year in actively-managed U.S. equity funds, down from 1.21% in 2015. Investors in passively-managed U.S. equity funds (including ETFs) paid an average of 0.49% a year, down from 0.62% in 2015. Actively-managed international stock fund costs came down from 1.39% to 1.22% over the same time period; for passively-managed funds, the drop was from 0.60% to 0.49%. Overall, for all funds—including taxable and municipal bond funds, commodities and alternative funds—the weighted average for active managers came to 1.08% a year (down from 1.20% in 2015) compared with 0.61% (down from 0.72%) for passive funds.

A Prediction

Morningstar predicts that fund fees in both active and passive categories will continue to drift lower, as consumers and advisors put their money into increasingly less expensive funds. And it notes that there are now a handful of zero-fee index mutual funds and ETFs.


If you don’t know how much you’re paying for your funds, you should. You can find them at Morningstar.com, or in the prospectus. These fees can impact your long term performance, which is why many investors are flocking to them.


Rich Feight, CFP
Rich Feight, CFP

Hi, I'm Rich Feight I'm a fee-only Certified Financial Planner, successful business owner, and self-made millionaire that knows how to beat the system and become wealthy. I have a lot of clients that have done it too. I'm also pretty good at finding that ever-elusive work/life balance so many of us strive for. Lucky for you I have an abundant mindset and give all my knowledge away on my blog. So if you want to know what it takes to become a millionaire, follow me.