Core Insights - Mutual fund and ETF fees have continued to decline in 2025, remaining at historic lows due to increased competition among funds for assets [1][2]. Group 1: Fee Trends - The Investment Company Institute (ICI) report indicates that all fund wrapper and style combinations have experienced average fee declines since 2017, with both active and passive mutual funds seeing reductions over the past three decades [2]. - Average expense ratios for equity mutual funds have decreased by 62% from 1996 to 2025, while bond mutual funds have seen a 57% drop. Index equity and bond ETFs have experienced reductions of 33% and 50%, respectively [3]. Group 2: Contributing Factors - Key factors contributing to the decline in mutual fund fees include the closure of high-expense funds, the introduction of lower-cost funds, and the movement of assets from more expensive to cheaper funds [4]. - An increasing share of fund assets is now held in no-load share classes, which typically have below-average expense ratios, alongside the growth of cheaper index fund investing [5]. Group 3: Notable Examples - Some ETFs, such as the State Street SPDR Portfolio S&P 500 ETF (SPYM), charge as low as two basis points (bps), while the Avantis U.S. Equity ETF (AVUS) charges only 15 bps for its active management approach [6]. Group 4: Advisory Insights - Advisors and investors are encouraged to conduct thorough due diligence beyond just the expense ratio, as the underlying assets of the fund are also crucial [7].