Morningstar data revealed the median expense ratios for diversified domestic stock mutual funds and ETFs fell since the first quarter of 2017. Over the past six months, expense ratios for all nine Morningstar style-box categories of actively managed mutual funds declined, particularly in mid-cap and large-cap growth categories, where the median expense ratio fell by three basis points. The decline in expense ratios for actively managed mutual funds, while small, shows the effect investors are having by shunning the category, notes Morningstar. The primary reason cited for the decline is competition from passive funds and ETFs.

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