A version of this article was published in the August 2015 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
In a 2003 contribution to CFA Magazine,  Vanguard founder and former CEO Jack Bogle introduced the cost matters hypothesis, or CMH. Bogle presented his theory as a substitute for the efficient-market hypothesis, or EMH, as a means of framing the task facing investors aspiring to beat the market:
Ben Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.