The effects of MERs on your Investments
All Investments are assumed to make the exact same return over the next 20 years. This is to illustrate the power of low Management Expense Ratio (MER) fees.
Lets assume in all three cases that you start with a $1,000,000 deposit and let it grow in an investment for 20 years without being touched or contributed to. All scenarios have an annual return of 7% before MERs.
Note: When dealing with ETFs, it is important to remember that transaction costs (i.e. stock commissions) are incurred for every buy or sell, and advisor compensation, if any is extra. Investors who are considering adding one or more ETFs to their portfolio should first take a careful look at their situation, investment style, knowledge level and time horizon to determine whether an ETF fits their overall investment strategy.