To cheap large-caps go the spoils
The cheapest large-cap blend funds, active and passive, ETF and pooled, grew by 5% over the 12-months ended Sept. 30 just on new client money, according to Morningstar. Their more expensive counterparts, the bottom quintile, lost 28.6% by the same metric during the year. Similar activity was observed by Morningstar in midcaps and small-caps, but to lesser degrees.
Small-cap funds remain the relatively most expensive of the group as their associated fees often reflect their higher cost of doing business. Small-cap equities can carry higher trading costs and liquidity premiums.
Small-cap value funds carried the highest median fee at 1.16%, while large-cap value was the lowest at 0.92%.