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Rekenthaler Report

Why Fund Costs Are Dropping

Vanguard is a big reason, but not the only one.

Downhill All the Way
This week, Morningstar released its annual study on mutual fund expenses. (Take a look; it's an easy read, and very informative.) The report's title reveals its punch line: "Average Fund Costs Continued to Decline in 2015." Yes they did, as measured by dollar weighting, which gives bigger funds their due, and thus addresses the question of the typical investor experience. (In contrast, computing an equal-weighted average would indicate what the typical fund does.)