Home›ETFs & Funds›Fund Industry›1% advisory fees can cut into returns more than invest…

1% advisory fees can cut into returns more than investors expect

The article cites Charles Ellis in saying fee and costs can consume roughly 15% of investment returns, reflecting how expenses compound over time.

Reported · Written up by our desk · Fund Industry

MarketWatch highlights arguments from investing legend Charles Ellis that many stock pickers end up in a losing game, largely due to costs and fees.

In the piece, Ellis suggests that a seemingly modest 1% advisory fee is not as small as it appears, because it can take a much larger share of overall performance.

The article frames the issue as a structural problem for investors who rely on active selection, where ongoing expense drag can erode returns over time.

It emphasizes that the fee burden needs to be evaluated against what it subtracts from investment results, not just the sticker price of the advisory charge.

More like this

Sources