Minimising Investment Expenses
Costs may not be sexy but they are the fastest and surest way to increase your return without increasing your risk. And index funds and ETFs are often a good choice.
Taking a US example – the Vanguard Total Stock Market ETF (VTI) – it charges just 0.05%, vs. 1.17% for the typical actively managed stock fund. After twenty years here are the numbers:-
That’s a whopping $77k difference, which equates to 25% more money just by picking the low cost option!