Funds describing fees in dollars could mean another boost for exchange traded funds (ETFs). The Securities and Exchange Commission is considering forcing mutual funds to disclose fees and performance as simple numbers, reports the Editorial Staff at Financial Planning.com. The SEC chairman, Christopher Cox, said funds should report "one simple number that captures fees and expenses." Information is usually buried deep within the prospectus and this has become one of the SEC’s top regulatory priorities.
Comparisons are quite useful to consumers, especially when you use the universal language of numbers. Especially if retirees are supposed to manage their own accounts, they need to know how their investments are doing. The biggest challenge is if they will be able to come up with a number that is really meaningful. With all the uncertainty around mutual funds and fees, it makes ETFs more appealing.
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