Cost guide

Expense Ratio Impact: Why Investment Costs Matter

Expense ratios are charged gradually, but their long-term effect can be significant because they reduce the return that compounds over time.

How expense ratio works

Expense ratio is an annual cost charged by a fund. It reduces the fund return before investors receive the net result.

A difference of 0.5% or 1% per year may look small, but over long periods it can create a large gap in final value.

Compare expense ratio together with tracking quality, liquidity, risk, fund strategy, consistency, and tax impact.