The annual U.S. Fund Fee Study reports record-low fund fees in 2021, and the study's pre-built dataset is now available for users in flagship investment research platform Morningstar DirectSM
CHICAGO, July 12, 2022 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today published its annual fund fee study, which evaluates trends in the cost of U.S. open-end mutual funds and exchange-traded funds (ETFs)1. The study found that the asset-weighted average expense ratio of U.S. funds fell to 0.40% in 2021 from 0.42% in 2020, saving investors an estimated $6.9 billion as a result.
"Intensifying competition among asset managers and changes in the economics of advice are two factors driving fees lower," said Bryan Armour, director of passive strategies research for North America. "Investors are also increasingly aware of the importance of minimizing investment costs, which we expect to continue in this down market."
Key findings from the study include:
U.S. Fund Fee Trends Notebook in Morningstar Direct's Analytics Lab
The U.S. Fund Fee dataset used for the 2021 U.S. Fund Fee Study is now accessible to Morningstar Direct users within Analytics Lab. With the U.S. Fund Fee Trends notebook, users can evaluate fee trends within the universe of U.S. mutual funds and ETFs. The notebook facilitates analysis of short- and long-term fund fee trends through a variety of lenses such as active versus passive funds, by Morningstar Category or service-fee arrangement, and more.
Morningstar's prebuilt datasets in Analytics Lab scale analysis, visualize results, and document methodology so users can automate processes that were previously cumbersome or not available. Learn more about Analytics Lab here.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $265 billion in assets under advisement and management as of March 31, 2022. The Company has operations in 29 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
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1 The study excludes money market funds and funds of funds.
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SOURCE Morningstar, Inc.