ProFunds

None of the firm’s assets are covered by an invested manager. Team members’ investments are viewed as helping to encourage long-term thinking and align portfolio manager and investor interests. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the second most-expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. Average tenure of nine years among the longest-tenured managers at ProFunds is on par with peer firms. In isolation, seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions.