Bogle On Mutual Fund Performance

Jack Bogle has written a journal article documenting his research on the impact that fees have on mutual funds performances. According to the article, fees and all of the costs associated with active trading reduce the investment returns of the average mutual fund by 2.66 basis points.  Comparing this with a low-cost index fund, Mr. Bogle estimates that an investor using a passive investment approach would end up with 20% more income at retirement age. He also has some interesting data o...