ETF vs Mutual Fund Calculator

ETF vs Mutual Fund Fee Comparison Guide

Expense ratios erode investment compound growth over long time horizons. Lower fund fees leave more capital invested to compound.

Formula

Ending Balance = Principal * (1 + (Gross Return - Expense Ratio) / 100) ^ Years
Fee Advantage = ETF Balance - Mutual Fund Balance

Frequently Asked Questions

How does an expense ratio affect returns?

Fees are deducted continuously from total assets under management, reducing annual net compound growth.

Why do ETFs typically have lower expense ratios?

Most ETFs track passive market indexes and carry lower administrative overhead than actively managed mutual funds.