Fund Fees Are a Guaranteed Drag on Returns — Here Is How to Think About Them
Most investment costs live in the realm of possibility: you might overpay in taxes, you might pick a poorly timed entry point, you might encounter unexpected trading frictions. The expense ratio is different. It is not a possibility. Every year you hold a fund, that percentage leaves your portfolio — in good markets, in bad markets, and in flat ones — whether or not the fund earned a single dollar for you.