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When Comparing Fees ETFs Come Out Clear Winners Numerous studies show that over the long term, managed mutual funds cannot beat an index fund, such as an ETF. For example, according to the SPIVA scorecard, 75% of large cap funds “underperformed” the S&P 500 over five years through Dec. 31, 2020.  Almost 70% underperformed over three years, and 60% over one year.  And this is just the tip of the iceberg, with most other managed mutual funds both domestic and international underperforming their applicable index. This is partly explained by the higher fees of managed mutual funds, which cut into the investor s return. According to Morningstar, the average expense ratio for a managed mutual fund in 2019 was 0.66%. Compare this to a well-diversified portfolio of ETFs, which can be put together with an average blended fee of 0.09%, according to ETF.com. Try getting a fee that low with mutual funds.

United statesRoger edelenUniversity of californiaCome out clearMore nimble then mutual fundsSticking pointAsk elementsஒன்றுபட்டது மாநிலங்களில்பல்கலைக்கழகம் ஆஃப் கலிஃபோர்னியா