Going, going, almost gone: Fund fees drop to record low
NEW YORK (AP) — The stock market keeps going higher, but fees to own funds keep going lower.
Investors paid less to own funds last year than ever before: about $48 in expenses for every $10,000 invested, according to a study by fund tracker Morningstar.
That’s roughly half of what investors paid in 2000, when expenses ate up $93 of every $10,000 invested. Last year alone, investors saved a cumulative $5.5 billion thanks to the drop in fees from 2017, the second largest decline on record since 2000.
While the difference of $1, or a few hundredths of a percentage point in expense ratios, may not sound like much, it adds up over the decades that a 401(k) account can grow compounded returns.