An expense ratio affects everything from exchange traded funds (ETFs) to mutual funds. It’s important to keep expense ratios as low as possible, as a high expense ratio can 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, your portfolio is no longer getting the return of the overall market, it’s 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