Expense-Ratio Drag
Fees compound, quietly. A fund's expense ratio looks tiny each year, but on a $10,000 investment growing at an assumed 7% a year for 30 years, here is what it actually costs — the fee-free balance minus the after-fee balance.
source: yahoo_info 14 funds assumption, not advice
What the fee costs over 30 years
| Fund | Expense ratio | Fee cost / $10k · 30yr | % of balance lost |
|---|---|---|---|
| NVDY | 1.09% | $20,133 | 26.4% |
| MSTY | 1.03% | $19,173 | 25.2% |
| QQQI | 0.68% | $13,252 | 17.4% |
| SPYI | 0.68% | $13,252 | 17.4% |
| QYLD | 0.60% | $11,817 | 15.5% |
| JEPI | 0.35% | $7,126 | 9.4% |
| JEPQ | 0.35% | $7,126 | 9.4% |
| RSP | 0.20% | $4,155 | 5.5% |
| QQQ | 0.18% | $3,749 | 4.9% |
| SCHD | 0.06% | $1,270 | 1.7% |
| VT | 0.06% | $1,270 | 1.7% |
| VYM | 0.04% | $849 | 1.1% |
| VOO | 0.03% | $638 | 0.8% |
| VTI | 0.03% | $638 | 0.8% |
A ~1% fee (many covered-call / option-income funds) surrenders roughly a quarter of your 30-year balance; a 0.03% index fund gives up almost nothing. The math is just compounding at (return − fee). Expense ratios are public and sourced; see methodology.