Clean shares refer to a type of mutual fund share class that is free from any distribution-related fees, such as 12b-1 fees or commissions. The term "clean" is used because these shares do not include any additional fees or expenses that would reduce an investor's returns.

Clean shares were introduced as part of the Department of Labor's fiduciary rule, which requires financial advisors to act in the best interest of their clients when providing retirement advice. By eliminating distribution-related fees, clean shares offer transparency and lower costs for investors.

With clean shares, financial advisors can choose their own compensation model, either charging a separate fee for advice or receiving a commission from the mutual fund company. This allows advisors to better align their interests with their clients and provide more objective advice.

While clean shares are a relatively new concept, they are gaining popularity as investors become more aware of the fees and expenses associated with mutual fund investing. As with any investment, it is important to do your research and understand the risks and potential benefits before investing in clean shares.

Clean shares refer to a class of mutual fund shares that exclude embedded commissions, such as sales loads or 12b-1 fees, which are typically used to compensate brokers and financial advisors. This transparency makes clean shares a cost-effective investment option, as investors are not indirectly paying for advisory services they might not use. Instead, investors who choose clean shares pay for advisory services separately, often through a flat fee or a fee based on assets under management. This model aligns with regulatory efforts to enhance fee transparency and protect investors from hidden costs. Clean shares can lead to significant savings over time, allowing investors to retain more of their returns. They are increasingly popular among investors seeking clarity and lower costs in their investment portfolios.