WATCH:
@RepTroyDowning questions witnesses on active versus passive fund costs, to which Mr. Ptak replies:
“Yes, indeed, we have seen the cost of active funds come down. That's for a few reasons. One is, so if you're looking at something like an asset-weighted average expense ratio for active funds, I think as of the end of last year, it was 0.57%. I think that's about 30 basis points or so lower than it was ten years ago. And that's the product of two things. Fund managers have been lowering their fees, and investors have been responding by directing monies towards cheaper active funds. And so that's brought that asset-weighted average expense ratio lower.”
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