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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.

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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. If your broker is charging you for trades and you trade frequently enough, it might be worth switching brokerages. Expense ratios : An expense ratio is an annual fee charged by mutual funds and exchange-traded funds (ETFs).

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History Says Being Added to S&P 500 Will Have This Impact on Palantir Stock

The Motley Fool

stocks and there is an enormous amount of investor money tied to the index because so many exchange-traded funds (ETFs) and mutual funds track/mimic its performance. pps 2000 to 2010 +3.64 pps 2000 to 2010 -1.69 The index is widely viewed as the benchmark for U.S. percentage points during this period.

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Think Hedge Funds Are Super Secret? They're Often Not -- and You Can Invest in Many of the Same Stocks.

The Motley Fool

What are hedge funds? A hedge fund has a lot in common with a standard actively managed mutual fund. Like a typical mutual fund , it pools the money of investors, and its managers decide how to invest that money. Hedge funds tend to charge significantly higher fees than mutual funds.

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What's the Best Way to Invest in Stocks Without Any Experience? Start With This ETF.

The Motley Fool

That option is an exchange-traded fund (ETF). ETFs are similar to mutual funds but they are more accessible to the average investor and they trade more like stocks. Better still, index funds tend to outperform actively managed mutual funds. Past three years: 9.6% Past five years: 15.1%

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A New Stock Is About to Join the S&P 500. Does History Show That Buying It Now Could Pay Off?

The Motley Fool

For one thing, exchange-traded funds (ETFs) and mutual funds that track the S&P 500 index must scoop up shares. During the period between 2000 and 2010, the median excess returns fell to 3.64%. The cybersecurity stock jumped nearly 4% as investors applauded the move.

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Here's Hoping These Aren't Truly the Most Popular Investments

The Motley Fool

Let's start with a 2024 survey from Gallup that asked: "Which of the following do you think is the best long-term investment -- [bonds, real estate, savings accounts or CDs, stocks or mutual funds, gold (or) cryptocurrency]?" Real estate is a mixed bag, with many ways to invest in it.

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