What fees cost you
A 1.5% fee sounds small. See how much of your savings it takes over time.
A cheap fund against an expensive one
Cheap fund ends at
Expensive fund ends at
Lost to the higher fee
Cheap fundExpensive fundLost to the higher fee
Same monthly investment in both funds, at 9% a year before fees. The fee is charged on the whole balance every year, so the gap widens over time.
What to do: check the annual fee before you buy. Broad index funds and ETFs often cost 0.2% a year or less.