Morningstar Research on Fees


According to Morningstar’s research, “Expense ratios are strong predictors of performance. In every asset class over every time period, the cheapest quintile produced higher total returns than the most expensive quintile.” Therefore, a mutual fund’s expense ratios – the fees, or costs, you pay to own your fund – are a very strong determinant of investment results. But don’t take our word for it. Please Google it yourself to independently verify this assertion after you read the Morningstar research.

In fact, we believe costs are one of the 2 greatest determinant of investment results. Do you know that the other one is? By the way, we believe the same cost metrics apply to ETFs.

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