Professionals have businesses and clients to worry about, meaning there is an inherent conflict of interest that
exists in the mutual fund world (and much of that carries over to most hedge funds as well).
When you look at the mutual fund industry — and they're often called liquid alts, the hedge fund — like strategies that have started to
appear in the mutual fund world — and, we do some of these.
Nevertheless,
in the mutual fund world, the average expense ratio for actively managed stock funds stands at 1.28 percent; for actively managed bond funds, it is 0.97 percent.
Six years on, Vanguard is still No. 1
in the mutual fund world — and by a widening margin.
In the mutual fund world, this kind of active management is the norm, but it's still unusual in the ETF space.
In the mutual fund world, you pay regardless of whether any service is provided or not (especially for accounts under six figures).