Core Insights - The number of stock and bond funds has decreased by 1,651 over the past decade, indicating significant consolidation in the market [1][5] - Lower fees are increasingly contributing to outperformance in investments, making expense ratios a critical factor for investors when selecting funds [2][3] - The trend of falling average expense ratios, which are now over 50% cheaper for stock and bond mutual funds and ETFs, has been a dominant investment trend for the last 25 years [3] Fund Performance and Selection - Fee differences are becoming more significant in explaining performance margins between funds, suggesting that expenses should be a top consideration for investors [2] - DIY investors tend to be more cost-conscious, while casual investors may not thoroughly research fund options, relying instead on recommendations [4] - A fund with a 1% fee must outperform one with a 0.50% fee by more than half a percent to be considered a better investment [4] Market Dynamics - The net loss in stock and bond fund volumes is nearing levels not seen since the Great Recession, with the remaining funds generally being older and newer funds underperforming [5] - Newer funds are struggling to keep pace with older funds before fees, which may indicate a lack of new fund launches and increased competition among higher-performing funds [6]