(MER) The Fee Eating Your Gains🟩🟥
Management Expense Ratio which Represents the fee an investment fund charges to operate and manage a ETF- Hence the name. This is one of my top Priorities while investing in long term ETFs because it can Quietly drain your gains overtime.
For Example📊
You invest $10,000 earning 7% annual for 20 years with a MER of 1%, that drops your annual return to 6%.
Over 20 years with 7% you would have $38,697.
Over 20 years with 6% you would have $32,071.
The difference is around $6,600, with more invested this makes a big difference.
👍My highest MER for a ETF I own is 0.39% for ZNQ and I would not want anything higher.
👎My lowest MER is for VFV at 0.09%, very soild.
What's the highest MER you would take on a ETF??⏬
