Investment fees reduce the amount left to compound. The percentage looks small because the lost future growth is invisible today.
OUR METHODSources → assumptions → European context → verdict
The published example
Starting with €10,000 at an 8% gross return for 20 years, a 0.22% fee produced about €46,000 in the illustration versus about €34,000 at a 1.5% fee.
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Expense ratios are only part of cost. Include trading, FX, spread, custody and tax friction.
Do not optimise blindly
A slightly higher fee may be justified by better diversification, implementation or tax fit. Cost matters after the product is suitable.
Educational illustration only—not personal financial, tax or investment advice. Tax, salary, broker and market figures change; verify current local information before acting.