Two Thirds of Advisors Care Most About a Fund’s Cost

I don’t know what this would have looked like if you had run the survey ten years ago, but my guess is it would have been much different. Schwab asked 381 registered investment advisors managing over $50 million what the most important factors were for their mutual fund / ETF choices when building client portfolios. Back in the day, things like “brand name” and Morningstar rating would have undoubtedly been more important – many more advisors used to see themselves as people who could select winning funds ahead of time.

Not anymore. Portfolios are being built based on the dictates of their clients’ financial plans, and the plans require hitting objectives that do not include “beating the market” or outperformance or alpha.

Read on (source and credit)

https://thereformedbroker.com/2018/11/06/two-thirds-of-advisors-care-most-about-a-funds-cost/