Sentences with phrase «frequent trading expenses»
By adopting investment strategies that track passive indexes rather than requiring active management, ETFs don't have to pay as much for frequent trading expenses, and they generally don't pay managers as much to implement those strategies as they would to come up with their own independent investment ideas.
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One Morningstar study showed that during a period when the underlying portfolio assets were up 9 % or 10 %, the average investor earned 2 % to 3 % because of frequent trading, high expenses, and other stupid decisions.
Many inverse ETFs utilize daily futures contracts to produce their returns, and this frequent trading often increases fund expenses.
High - yield funds require a very active management style, which can mean expense ratios of 2 to 3 % to compensate for the fees generated by frequent trading of assets.
Frequent trading into and out of a Fund can harm all Fund shareholders by disrupting the Fund's investment strategies, increasing Fund expenses, decreasing tax efficiency and diluting the value of shares held by long - term shareholders.
If you factor in fees charged, expenses of frequent trading, and the excess tax liabilities, they almost never produce extra returns to the investor over what could have been obtained with a «do it yourself» (DIY) indexing approach.