2025 Q2 Newsletter

This article breaks down what mutual fund expense ratios are and why they matter for your retirement savings. It explains how these fees impact long-term returns, highlights the trend toward lower costs, and offers guidance on how to evaluate expenses when selecting investments in your workplace retirement plan.

• Expense ratios represent the annual costs of running a mutual fund, including management, administration and sometimes marketing expenses — and they directly reduce your net returns over time.

• Different types of funds come with different costs — actively managed funds tend to charge more, while index funds generally offer lower expense ratios.

• Plan documents and fund provider websites are valuable resources, offering detailed fee breakdowns to help you understand what you’re paying