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The Daily Capital
INVESTING 101 · Lesson 49

Expense ratios: the fee quietly eating your returns

Daily Desk · Editorial5 min read
A 1% fund fee sounds tiny. Over a lifetime of investing, it can quietly eat a six-figure chunk of your returns.

When you buy a fund, you're hiring it to manage your money — and it charges a fee every year, automatically, whether it does well or not. That fee is the expense ratio, and it's one of the few things in investing you can actually control.

Educational, not financial advice.