Do higher fees buy better performance?
The long-run evidence says usually not. The fee carries the burden of proof.
The SPIVA Australia Scorecard from S&P Dow Jones Indices found that 74% of actively managed Australian Equity General funds underperformed the S&P/ASX 200 in 2025, and 87% underperformed over the 15 years to December 2025.
That does not mean active management is never worth paying for - the ASX-listed Islamic funds InvestHAQ covers are actively managed, and the relevant comparison for them is against a screened benchmark, not the broad market. It does mean a higher fee should be visible, comparable and defended by evidence. Screening decides what a fund may hold, not how it is managed: overseas, many Islamic ETFs passively track a Shariah-screened index.
Past performance is not a reliable indicator of future performance.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.