INVESTORS ARE DRIVING EXPENSE RATIOS DOWN
As it’s the pledge fund-raising season on public television, this week we are revisiting a show on an important topic – retirement. The good news is that Americans are living longer and spending more years in retirement than ever before. However, funding retirement is a fast approaching crisis. This weekend on WEALTHTRACK we have an exclusive interview with Financial Thought Leader and legendary investment consultant, Charles Ellis, who tackles America’s greatest domestic financial challenge in a new book, “Falling Short: The Coming Retirement Crisis and What To Do About It”.Plus, new this week, research from Morningstar shows that investors are driving fund expenses lower. According to their recent study, 95% of all flows over the past decade have gone into funds in the lowest-cost quintile. Needless to say passive funds have benefited the most. The entire fund industry is paying attention. Over the past five years, 63% of the fund share classes and exchange-traded products in Morningstar’s universe reduced their expense ratios. Only 21% increased their takes.
For those of you interested in a deeper dive into fee trends, Morningstar is sharing the full study with WEALTHTRACK.
