Which type of fund generally has the lowest average expense ratio?

Question

Quizplus · Accepted Answer

Indexed funds generally have the lowest average expense ratio because they are passively managed and track a specific index, so there is less need for active decision-making and research, resulting in lower expenses. Actively managed funds, such as actively managed bond funds and actively managed international funds, typically have higher expenses due to the research and management involved. Hedge funds are not typically available to individual investors and can have extremely high expenses, so they are not a good choice for most investors.

Which Type of Fund Generally Has the Lowest Average Expense