Funds With High Fee Hurdles
These funds are Morningstar Medalists despite their relatively high expenses.
Expenses are one of the easiest factors for mutual fund investors to control. You can’t be certain how a fund is going to perform, but you can know exactly how much you’re paying for it.
Low fees help a fund’s Morningstar Analyst Rating, because they confer an advantage right off the bat over more-expensive counterparts. However, it’s possible for a fund to have strong people and processes despite high fees. Below are four funds that earn ratings of Bronze or Silver, even though each has a Negative Price Pillar rating. They have Positive Process, People, and Performance ratings, but their high price tags pose a higher hurdle to future outperformance.
David Kathman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.