ETF performance -based fees and assets (AUM) -MEB FABER Research

We had a fun little study comparing the average MorningStar Star grade with the funds. We surveyed all ETF companies with at least five rated funds, resulting in about 50 companies.

What we found would be meaningful: the most expensive fund group tended to be the worst performer. But once the most expensive qualification number is eliminated, the average morning star grade is almost the same. (This is well known for at least 10 years …)

Vanguard, Fidelity, and Schwab’s mega companies are all represented by the top 10 average grade (8-10), but all of the top seven companies are small boutiques with an asset of about $ 1-10 billion.

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