Yes, Funds Are Cheaper, but It’s Not Because of the DOL

Investors paid less to own mutual funds and ETFs in 2016, but the impact of the Department of Labor’s fiduciary rule has not yet been felt, according to a recent report.

While a massive amount of assets has flowed out of traditional mutual funds in recent years, not all funds are sharing the same fate, according to recent research from the Washington-based Investment Company Institute (ICI). In the most recent ICI Research Perspectives, an annual analysis of fund flows and expense ratios, no-load mutual fund share classes enjoyed $113 billion of net inflows during 2016, while approximately $232 billion flowed out of load mutual fund share classes.

In 2016, the ICI attributed most of the average expense ratio reductions to the shift towards low-cost, efficient and passive investing strategies, including a preference for no-load share classes.

from FA News http://www.fa-mag.com/news/yes–funds-are-cheaper–but-it-s-not-because-of-the-dol-33300.html

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