![]() ![]() ![]() Higher fees are par for the course when it comes to bank-sponsored mutual funds.Ģ of the top DWS mutual funds DWS has carved out a small niche in the world of municipal bonds and tax-free mutual funds. Its S&P 500 index fund, Deutsche Equity 500 Index, has an annual expense ratio of 0.25-0.31%, which is almost twice as expensive as the comparable Vanguard 500 Index fund. ![]() Its no-load funds also have above-average expenses. You'll need a 6.1% return on this DWS mutual fund just to get back to even. The load ($57.50 for every $1,000 invested) is skimmed off the top mostly to compensate your advisor. Thus, for every $1,000 you invest, only $942.50 actually makes its way into the fund. In addition, you'll pay a load of 5.75% upfront to buy the fund's A shares. For example, one of its recent high-flyers, the Deutsche Global Infrastructure fund, had a net annual expense ratio of 1.37% in 2014. Those profits invariably come from fees charged directly to investors.ĭWS mutual funds are expensive Across the board, DWS mutual funds have average or above-average fees. As the core business of banking (taking deposits and making loans) becomes less profitable, banks are turning to their wealth management divisions to produce bigger profits. You should probably treat bank- and wealth-management-firm sponsored funds with an additional dose of skepticism. Naturally, its funds run the gamut, from the world of index-tracking S&P 500 funds to specialized municipal bond funds. DWS mutual funds are the product of Deutsche Bank, sold through its asset management arm to its clients in the United States. ![]()
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