"It's virtually impossible for a manager in the high-grade U.S. bond market to add more than 0.25% in annual returns over the long run," says William Reichenstein, an investments professor at Baylor University in Waco, Texas. "If you're talking about a fund with 1% expenses versus another with 0.25%, there's no way that the high-cost fund can overcome the expense burden and compete with the low-cost fund."

Full article at wsj.com (subsciption required).

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