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Fund Spy

Fund Expense Ratios Dropped in 2011

Why the average investor is paying less for fund management.

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The average investor is paying a little less for open-end mutual fund management today. Specifically, the typical investor is paying 0.75% in expenses compared with 0.77% in 2010. Expense ratios dropped in all the major asset classes except for alternatives. The figures include all open-end funds except funds of funds where the layering of fees can make for messy comparisons. To arrive at what the average investor is paying, we asset-weight expenses--thus giving greater weight to the PIMCO Total Returns of the world.

This year we included all share classes in the study rather than excluding institutional share classes as we have in the past.

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