The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: MarciaB on June 01, 2014, 04:03:15 PM

Title: Sunday NYT article about mutual funds, fees and future perfomance
Post by: MarciaB on June 01, 2014, 04:03:15 PM
In today's Sunday New York Times there's an article citing some new research from Morningstar regarding a fund's fees and how it relates to a fund's future performance. There seems to be a strong correlation between low fees and higher future performance. Rules of the Fund Road: Watch the Fees, and Don't Look Back written by Jeff Sommer.

Here's a quote from Russel Kinnel, the director of fund research at Morningstar:  "I've found that low cost is the best single predictor of subsequent performance available. It's definitely not past performance."

Here's the article: http://www.nytimes.com/2014/06/01/your-money/rules-of-the-fund-road-watch-the-fees-and-dont-look-back.html?_r=0

There's a decided preference for Vanguard in the MMM community (for a whole lot of excellent reasons) and here's just some more fodder for that discussion.
Title: Re: Sunday NYT article about mutual funds, fees and future perfomance
Post by: butchmonkey on June 01, 2014, 04:30:42 PM
Nothing new here, but this is the most important rule of investing. And I fully support shouting it from the rooftops at every opportunity.

Thanks for sharing.


Sent from my iPhone using Tapatalk
Title: Re: Sunday NYT article about mutual funds, fees and future perfomance
Post by: arebelspy on June 06, 2014, 10:48:30 PM
Solid article.  Wish every investor understood that this simplest method of investing is also the most likely to be profitable.

Thanks for sharing.
Title: Re: Sunday NYT article about mutual funds, fees and future perfomance
Post by: Icecreamarsenal on June 07, 2014, 04:50:10 AM
+1. This deserves to be at the top of the pile, again.


Sent from my iPad using Tapatalk
Title: Re: Sunday NYT article about mutual funds, fees and future perfomance
Post by: Mutton Chop on June 07, 2014, 08:13:50 AM
Is anyone looking at Schwab's low cost ETF's?

Thanks for the article.