Lower expense ratios boost returns from "summary" of All About Index Funds by Richard A. Ferri
The concept of lower expense ratios boosting returns is a fundamental principle that all investors should pay attention to. Expense ratios are the annual fees charged by mutual funds or exchange-traded funds (ETFs) to cover operating costs. These fees are deducted from fund assets, which means they directly impact investor returns. When expense ratios are high, they eat into investment returns, leaving investors with a smaller portion of the overall gains. On the other hand, lower expense ratios mean that more o...
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