The only justification for mutual funds to have higher fees than ETFs is “active” management that leads to out-performance. How can a fund that has significantly worse holdings than its benchmark hope to outperform? After all, it’s the performance of a funds holdings that drive the performance of a fund.
The only justification for mutual funds to have higher fees than ETFs is “active” management that leads to out-performance. How can a fund that has significantly worse holdings than its benchmark hope to outperform? After all, it’s the performance of a funds holdings that drive the performance of a fund.
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