3 Reasons for Fund Investors to Celebrate
The less attention the industry attracts, the better it becomes.
Few will mourn 2020's passing. However, mutual funds and exchange-traded funds bucked the year's glum trend. While a pandemic raged and a recession struck, the fund industry quietly went about its business, with little fuss and even less cause for complaint. Funds acted as their shareholders would have hoped and expected.
That praise is more than faint. Over the years, the fund industry has suffered notable embarrassments, such overstating returns by mispricing portfolios; holding more low-quality bonds than permitted by prospectuses; and, during the market-timing scandal, favoring some customers over others. Given that checkered history, and considering how Wall Street generally operates, avoiding the headlines rates as a genuine achievement.