The value factor is one of the most widely followed investment factors, but for investors in mutual funds and exchange traded funds, a fund's performance and its fees are major factors in determining just how good of a value investors are getting.
Investors in actively managed value mutual funds pay attention because there is an excellent chance you are getting a bad deal.
"The average large-cap value mutual fund comes with a 1.1 percent expense ratio. Whether this seems high to you or not might depend on how well these funds have done relative to common benchmarks. We believe, semi-annual research from S&P Dow Jones Indices, operating independently from S&P Capital IQ, continually paints a stark picture that many of these funds may not be worth the cost,” said S&P Capital IQ in a research note out Friday.
To go along with those higher fees (1.1 percent per year means $110 for every $10,000 invested), investors are also being subjected to disappointing performance, something that is all ...
/www.benzinga.com/general/education/15/09/5832937/finding-value-in-value-etfs alt=Finding Value In Value ETFs>Full story available on Benzinga.com
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