Technical Analysis of How MER Affects Long-Term Portfolio Growth
How much does a 1% management expense ratio actually cost you, in dollars? This study uses real Vanguard fund data (VOO and VFINX, December 2014 to April 2024) to model the compounding impact of different MER scenarios on a $100,000 portfolio. The results show how even modest fee differences compound into meaningful gaps in end balance and risk-adjusted returns over a decade.