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Investing

Mutual Fund Fee Analyzer

Compare two expense ratios and see exactly how much fees cost you over time. Spoiler: the difference is bigger than most people think.

Why expense ratios matter so much

An expense ratio is the annual fee a fund charges as a percentage of assets. Unlike trading commissions you pay once, expense ratios compound against you every year — silently. A 1% fee on a $500,000 portfolio is $5,000 every year, and it grows as the balance grows.

Realistic ranges

  • Total stock market index ETF (e.g., VTI, ITOT): 0.03%
  • S&P 500 index fund: 0.04% (Fidelity ZERO funds: 0.00%)
  • Active large-cap mutual fund: 0.50–1.00%
  • Specialty / alternative / sector funds: 0.75–1.50%
  • Variable annuity sub-accounts: 2.00%+ (often opaque)

The 1% rule of thumb

Over 30 years at typical market returns, paying an extra 1% in fees costs roughly 25–30% of your final balance. On a portfolio that would have been $1M, that's $250–300K — gone, not to a market downturn, but to fees.

How to find your fund's expense ratio

Look up the ticker on FINRA Fund Analyzer, Morningstar, or your broker's fund page. The number to find is "Net Expense Ratio" — gross can be misleading if there are temporary waivers.