How fees compound over time

Fees reduce your return every year, and that reduction compounds.

Simplified illustration: $10,000 for 25 years at a hypothetical 5% annual return. With 0.20% fees you end with about $32,300. With 2% fees, about $20,900.

The gap of roughly $11,400 comes from fees alone. Real returns vary; this calculation only shows the order of magnitude.