We did a enjoyable little research evaluating the typical Morningstar Star Score vs. charges on the funds. We examined all ETF firms with a minimum of 5 rated funds, leading to roughly 50 firms.
What we discovered would make sense: the costliest group of funds tended to be the worst performers. However when you do away with the costliest quartile, the typical Morningstar score is about the identical. (This has been well-known for a minimum of a decade…)
Whereas the mega corporations of Vanguard, Constancy, and Schwab are all represented within the prime 10 common score (8-10), the highest seven corporations are all smaller boutiques with belongings round $1 – $10 billion.
Hat tip to Anvith for the assistance and Morningstar for the inspiration.
