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Fund Spy

We've Downgraded These Funds' Price Ratings

These four funds have failed to keep up with dropping fees.

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This article was originally published in the August 2018 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website.

Mutual fund fees have increasingly come under the microscope as cheap passive vehicles have proliferated and investors have flocked to them. This trend, combined with a nine-year bull market that has caused fund assets under management to grow (despite many active funds seeing outflows), has driven fees downward. As a result, active funds that haven't lowered their fees have become less competitive on price, and their Price Pillar ratings, a component of the Morningstar Analyst Rating, have gotten worse. Let's take a closer look at four funds whose Price ratings dropped to Negative from Positive during the past five years.

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