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Fund Spy

Funds With High Fee Hurdles

These funds are Morningstar Medalists despite their relatively high expenses.

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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.

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