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.
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.