Morningstar’s 2026 Annual US Fund Fee Study
How do investors favor low-cost funds?
Investors are reaping the benefits of funds as fees decline on a seemingly year-over-year basis. Our researchers estimate last year, investors saved nearly USD 6.8 billion in fund expenses over 2025. Despite the drop in average expense ratios, investors should bear in mind the fee differences between mutual funds and exchange-traded funds.
In 2025, the average expense ratio paid by fund investors was less than half of what it had been two decades prior. Between 2006 and 2025, these costs fell from 0.80% to just 0.32%. As we analyze the fee dynamic, investors prioritize minimizing costs and favor low-cost solutions, while fierce competition among asset managers drive fees downward. Lastly, fee-based financial advice models play a central role in steering attention toward lower-cost funds, especially ETFs.
Morningstar’s annual US Fund Fee Study examines fees across mutual funds and ETFs as well as asset flows. Access the report to uncover how recent fee trends can inform your long-term investment portfolio strategy.
