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Weekly Market Summary
Jun 16 to Jun 20, 2025
Extra Credit*
- Investors saved an estimated $5.9 billion in fund expenses last year as the asset-weighted average expense ratio for all U.S. mutual funds and exchange-traded funds ticked down to 0.34% in 2024 from 0.36% in 2023.
- In 2024, the average expense ratio paid by fund investors was less than half what it was two decades ago. Between 2005 and 2024, the asset-weighted average fee fell from 0.83% to 0.34%. As a result, investors have saved billions in fund fees.
- However, fund fees are not falling as fast as they used to. Two factors are behind the slowing rate of change: Fees of prominent index mutual funds and ETFs are approaching a floor, with many already charging less than 0.05%. The emergence of active and alternative ETFs contributes to higher-priced ETF launches than previously observed.
- The asset-weighted average expense ratio for active U.S. equity funds was 0.60% in 2024. The asset-weighted average expense ratio for all active funds was 0.59% in 2023 and 2024, and the asset-weighted average expense ratio for all passive funds was 0.11% in 2023 and 2024. Declines in asset-weighted average fees were more muted than in previous years, but the average investor still paid less in 2024 than in 2023. In aggregate, last year’s asset-weighted expense ratios for actively managed and passive funds declined just 1% and 1.5%, respectively, from 2023.
As of 6/17/25.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.
Any discussion of individual companies is not intended as recommendation to buy, hold or sell securities issued by those companies. Aristotle Fund holdings can be found on the fund pages linked above.
Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.
Investing involves risk. Principal loss is possible.
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