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.

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