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A Financial Mystery: Investors Paying Tens of Billions of Dollars to Underperforming Mutual Funds -- When Index Funds are Cheaper and Perform Better

The Motley Fool

In 2021, investors paid almost $90 billion in total fees on about $14 trillion of actively managed mutual funds to an industry flogging a product demonstrably inferior to index funds. Active vs. passive funds It's quite a problem, and a seemingly puzzling one, too. Image source: Getty Images.

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Surprise: You're Probably Paying a Lot More in Investing Fees Than You Think

The Motley Fool

38% of mutual fund investors think they don't pay any mutual fund fees or expenses. Expense ratios : An expense ratio is an annual fee charged by mutual funds and exchange-traded funds (ETFs). Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,470 !*

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3 High-Yield Dividend ETFs to Buy to Generate Passive Income

The Motley Fool

Exchange-traded funds (ETFs) are one way to go about it. Equity ETFs invest in stocks, providing diversification like a mutual fund. Apple: if you invested $1,000 when we doubled down in 2008, youd have $46,992 !* You can pick ETFs that generate income while aligning with your risk and return objectives.

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The Stock Market's as Strong as It's Ever Been, but There's a Catch

The Motley Fool

Yes, times have changed There was a time when mutual funds' and brokerage firms' marketing materials touted how there'd never been a 10-year period since The Great Depression that the market had lost ground. And to its credit, the S&P 500's rolling 10-year-return track record is still respectable.

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2 Dividend Stocks to Double Up On Right Now

The Motley Fool

The company accounts for a huge proportion of the wider market's earnings, which makes it a big part of many index and mutual funds. Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,456 !* It's worth remembering that you likely have lots of exposure to Apple stock, even if you don't own many shares.

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How Should a Beginner Invest in Stocks? 1 Simple Investment for a Lifetime of Security.

The Motley Fool

But let's focus on stock investing -- and i f there's one product that is perfect for beginners, it has to be exchange-traded funds (ETFs). In short, ETFs are like mutual funds , but they trade like stocks. Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,756 !*

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How Will the Stock Market Perform in 2024? Here's What Wall Street Thinks.

The Motley Fool

There have been only two exceptions in the last six decades -- one at the beginning of the dot-com bubble bursting in 2000, and another with the financial crisis in 2008. The longer your investing horizon, the bigger the bang you'll likely enjoy.