2015 Conference
October 15–16, 2015
Orlando, FL
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Expense Ratios and Net Alphas of Large Cap Funds: Do Expenses Add Value?
Keywords: 5 words maximum
Mutual Funds, Expense Ratio, Abnormal Performance
Very short description for use in the program to help attendees understand more than a title can describe
In this study, we are evaluating the performance of large cap U.S. equity funds conditioned on the expense ratios. Specifically, we want to know whether expenses paid by individual investors should be viewed as expenses or strategic investments. We limit our discussion to large cap funds because within the space of actively managed funds, large cap funds tend to be more stable. We used pooled regression and ranked portfolio approaches to evaluate the abnormal performance of large cap equity funds conditioned on the expense they charge.
Lead & Corresponding Author
Abhay Kaushik, Radford University
Job Title
Associate Professor