Reason: Heavy layoffs have reduced costs, while the the gusher of fund fees continues only slightly abated.
Annual account fees range from 0.2% to 0.9% of assets, on top of the underlying fund fees.
The fund company keeps its talent and gets a piece of the action through lucrative hedge-fund fees.
Since index fund fees are continuing to drop, check regularly to ensure you're not falling far behind the fee leader.
It's easy enough to avoid falling victim to high index-fund fees yourself.
Despite recent regulatory efforts, fund fees remain murky to most regular investors.
WSJ: When Funds Lend Out Securities, Do Investors Get a Fair Share?
If you must have exposure to this style, you should buy a basket of attractive-or-better rated stocks and avoid paying undeserved fund fees.
What matters is that once again the truth about high mutual fund fees is being exposed and the benefit of index investing is being propagated.
Betterment uses low-cost exchange-traded funds from iShares and Vanguard Group, and takes a management fee of 0.15% to 0.35% on top of underlying fund fees.
In this symbiotic relationship Schwab gives the referrals and handles the adviser's back-office functions, while pocketing the revenue from commissions, mutual fund fees and interest spreads.
There is simply no reason why defined contribution investors should be paying retail mutual fund fees or investing in tax deferred variable annuities offering illusory insurance protection.
Peter Tufano of Harvard Business School and Matthew Sevick, a consultant, offer another explanation for why mutual-fund fees are high (though not for why they should be rising).
The SEC should also push harder to lower fund fees, improve disclosure and insist on overseeing hedge funds, the customers at the root of the mutual fund trading scandal, Bogle said.
My 7.0 percent total return prediction for U.S. stocks assumes 2.0 percent inflation, 2.5 percent real GDP growth and a 2.7 percent all-on dividend factor, less 0.2 percent in index fund fees.
In June, Richard Baker, chairman of a congressional sub-committee on capital markets, insurance and government-sponsored enterprises, introduced legislation that would require investors to be given more information about mutual-fund fees and other features of the business, such as fund managers' pay.
Many trade commission-free and fund management fees have been falling for months, across the board.
Over a decade, saving 1% a year on fund management fees adds up to serious money.
Moore's claim that North Carolina pays 29% less in fund management fees than the average public pension plan.
Hedge fund performance fees can be 15 to 20 percent of profits and venture capital funds are often 30 percent.
Fergus Livingstone, headmaster of the school, near Hook, called the bequest "a very significant gift" which would be used to fund school fees.
One can view this capping of revenue sharing as a counter-offensive to the Spitzer-led assault on mutual fund excessive fees that began the previous year.
FORBES: "Capping" 401k Revenue Sharing: Record-keepers Block Rebates To Participants (May 19,2008)
But Schwab extracts undisclosed fees from the fund vendors for acting as middleman, and these fees necessarily put upward pressure on fund expense ratios.
The drawback: The fund of funds investor pays fees to the fund of fund manager and to the managers of the underlying funds.
This reduction comes as large institutions such as pension and endowment funds pressure fund managers to lower fees in response to lower fund returns in recent years.
So for two years many hedge fund investors have been paying rich fees to hedge fund managers for performance that stinks.
Depending on the account or fund, fees can vary in their negative impact on returns.
For their trouble, opportunity funds charge hedge-fund-like fees of 1.5% or so of committed capital plus a 20% cut of profits.
Our analysis has concluded that well over 50% of the billions in mutual fund investment advisory fees retail investors have been paying are excessive.
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