Close

    Briefly Noted

    The Broker Penalty for Load Index Funds: Triple Cost

    Investors who buy index mutual funds through brokers are paying a steep “broker penalty” by being sold funds with much higher operating expense fees even before adding the distribution fees related to the cost of using the broker, according to a study by the Zero Alpha Group (ZAG) and Fund Democracy. The bottom line for investors: The extra operating costs paid over time for broker-sold load index funds are triple those paid by investors in true no-load mutual funds.

    ...To continue reading this article you must be registered with AAII.

    Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
    JOIN TODAY for just $29.
    Log in
    Already registered with AAII? Login to read the rest of this article.

    Register for FREE
    to read this article and receive access to future AAII.com articles.