The Returns Gap Shows Investors Can't Stop Chasing Performance

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The Returns Gap Shows Investors Can't Stop Chasing Performance

institutionalinvestor

1 month ago

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Poorly timed fund trades have cost investors nearly $4 trillion over the past decade, according to new research from Morningstar.In tracking the average dollar invested in nearly 23,000 U.S. open-end funds and exchange-traded funds, Morningstar found the average dollar invested in these funds earned 8.7 percent per year for the 10 years ended 2025—1.2 percentage points less than these funds’ 9.9 percent average annual total return over the same period.

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