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Fund Spy

Watch for Falling Fees

Bargains aplenty in mutual fund world.

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Most types of mutual funds haven't changed their fees much in recent years. The one exception: index funds. Investors have benefited from the intense competition among exchange-traded funds. That has led traditional open-end index funds to cut their fees, too, and some brokers have dropped commissions for buying and selling ETFs.

Now, more fee cuts are on the way in both actively managed and index funds. 

A Cheer and a Salute for the Admirals
Vanguard has announced de facto cuts by lowering the initial minimum investment for its Admiral share class of index funds to $10,000 from $100,000. In addition, actively managed Admiral shares have had their minimums cut from $100,000 to $50,000. The move means that the 1.8 million investors will save on fees.

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Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.