ImageÂ Credit: Alex Nabaum
By Jason ZweigÂ |Â March 1, 2019 11:00 a.m. ET
The best things in life may be free, but free investing can carry a cost.
On Feb. 25, SoFi, an online financial-services firm,Â filed a preliminary prospectusÂ for four exchange-traded funds, including two that will charge no management fees. That comes after Fidelity InvestmentsâÂ zero-fee mutual fundsÂ took in nearly $3 billion in the last five months of 2018,Â according to the firm.
Donât get me wrong: Lower investing costs are nearly always better. Funds that call themselves free, however, can monkey with investorsâ minds in surprising ways. If funds with zero expenses become more popular, investors will need to remember that expense-free doesnât mean risk-free….
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For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,Â The Devilâs Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
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