An expense ratio affects everything from ETFs to mutual funds. It’s key to keep it low, as it has the ability to cost you hundreds of thousands of dollars over the long term.
An Index investing strategy can quickly get derailed if you do not keep costs low. With a high expense ratio, you are no longer getting the return of the overall market, you are getting less.
We’ll dive further into what an expense ratio is and why it’s important to take into account when choosing index funds. But first, our disclaimer:[Read more…] about What is an Expense Ratio and Why it’s Important