Why Fees Matter
An expense ratio is the annual fee a fund charges, expressed as a percentage of your investment. Even a small difference compounds dramatically over time.
A 1% fee might sound small, but over 30 years it can consume over 25% of your potential returns. Low-cost index funds typically charge 0.03-0.20%, while actively managed funds often charge 0.50-1.50% or more.
Other Calculators
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Learn about mutual funds, ETFs, and how to evaluate fund expenses.
Mutual Funds & ETFs Course