Everything Counts in Large amounts!!

Mutual Fund expenses and their impact over time:

A $10,000 investment 20 years later (assuming a 7% annual return)

Index ETF (annual costs of .07%) $38,140

Index Mutual Fund (annual cost of .18%) $37,330

Actively Managed Mutual Fund (annual cost of 1.4%) $29,190

So a difference of a tiny 1.3% per year over 20 years equates to roughly 10,000 or your entire initial investment---

Low Costs are the secret to outstanding long term performance and not investment choices!


Source: SEC mutual fund cost calculator
Notes: All returns are pre tax. Assumes all funds earn the market return before expenses. Brokerage commision of $20 deducted from ETF return.