But surely these fund managers must be so great at picking stocks that their fees are justified?
Though it might not even sound like that much, this financial advisor demonstrated how a mere 2% MER could decrease investment gains by half over a 25-year investment. But surely these fund managers must be so great at picking stocks that their fees are justified? Au contraire! Recent research reveals that over a 15 year period, 82.2% of managed stock funds have been bested by the overall market. For this reason, many investors have jettisoned the old mutual fund strategies of their parents in favor of low-fee, passive ETFs that seek to mirror the market rather than beat it, since MERs of passive investments are generally a fraction of those of actively managed funds.