An ETF's advertised return isn't what you actually keep — the fund's expense ratio is deducted automatically, every year, whether the market goes up or down. This calculator shows the real, after-fee growth of your investment.
Why a 'small' fee matters so much
A 0.5% annual fee sounds tiny, but it compounds against you the same way returns compound for you. Over 20-30 years, the difference between a 0.03% fund and a 1% fund can be tens of thousands of dollars on the same investment.
What counts as a 'good' expense ratio
Many broad-market index ETFs charge between 0.03% and 0.20% per year. Actively managed funds often charge 0.5% to 1.5% or more — for that fee to be worthwhile, the fund needs to consistently outperform its benchmark, which most don't over long periods.