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November 2014

The Significance of Fund Expense Ratios

The median expense ratios for all U.S. equity and bond funds have been declining steadily since the inception of (and growing popularity of) index funds.  According to analysis provided by ICI, median expense ratios have continually trended lower since 2000 (see Chart 1). The median expense ratios for index bond funds and index equity funds are 0.11% and 0.12% respectively.  Interestingly, bond index funds have expense ratios that are still 50 basis points below the expense ratio for actively managed bond funds.  Stock index funds have expense ratios 75 basis Read More »The Significance of Fund Expense Ratios