UITF - elephant in the room

So BPI just increased its uitf management fees. 1.5 management fee for their Philippine index tracker fund is just horrendous. All they've got to do is replicate the PSEi completely. How would anyone justify such fee??? 1.5% is a very big fee for a passive investment. Kaya diretso na lang tayo mag invest sa stocks pag ganyan. You don't have to buy each PSEi's member's shares. Pili ka lang ng representative companies per sector, allocate proportional shares, then you're good to track the index.

Baka maisip mo yung FMETF. Ohhh boy, around 0.80% na expense ratio in the recent years. Improperly marketed pa so may illiquidity issues siya recently.

Ever heard of Efficient Market Hypothesis? Ang sabi lang niyan is di mo mabebeat ang market. I don't really subscribe to this hypothesis pero marami kang mapupulot dito. Yung mga mutual funds, nadidiversify siya to the point na nattrack lang nila ang market. Very few lang ang nabebeat ang market in real life and most (90% or more I should say) of this actively managed funds would just give less returns than the market kasi ito rin may pinakamatataas na fees. Just look at their portfolio on their prospectus and try to replicate. Invest directly on stocks, bonds, commodities, etc (and their corresponding efficient ETFs).

Actually wala naman dapat akong pake sa kung gusto mo bumili niyan. I just hate their high fees, their daylight robbery. These funds will just give less returns and sway large numbers of local individual investors who are solely confined to these products from the local stock market. Kawawa lang din ang stock market (and tayo as investors) in the long run.