DFI issues advisory to investors

The Wisconsin Department of Financial Institutions (DFI) has issued an advisory explaining that investors should understand expense ratios when comparing mutual funds and exchange-traded funds. The advisory explains what expense ratios are, how they are calculated, how they are affected by a fund’s management style, investment strategy, and portfolio size, and important considerations for investors. The DFI cautions investors not to make investment decisions based solely on a fund’s historical performance because past performance is no guarantee of future performance.