Are Fees the Only Investment Consideration?

Costs are a reliable predictor of a fund’s future returns and are also one of the easiest factors for investors to control. But they're not the only consideration for investors

Sara Silano 27 May, 2021 | 8:52AM
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European investors are paying lower expenses, on average, than ever before. According to a Morningstar study, for a group of equity and fixed-income Morningstar Categories during the period from 2013-20, the average fee paid by investors, represented by the asset-weighted average ongoing charge, was 0.69% in October 2020, a 31% decline from 2013.

change in fees morningstar chart

What's Driving Fees Down?

There are several factors that have driven fees lower:

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Sara Silano

Sara Silano  is Editorial Manager for Morningstar Italy

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