ETF Calculator
Calculate exchange-traded fund returns, costs, and net profits
Calculate ETF Returns
Category: Large Cap Stock | Expense Ratio: 0.03%
Total amount to invest initially
How long will you hold the ETF?
Annual management fee (auto-filled)
Transaction fees, bid-ask spread, etc.
Anticipated annual growth rate
Expected dividend distribution
Additional yearly investment
Annual increase in contributions
ETF Investment Results
Returns Breakdown
Costs Breakdown
ROI: 199.67% over 10 years
Impact of fees: Without the 0.03% expense ratio, your investment could be worth approximately $25,937.42 more
Investment Insights
Example ETF Investment
Scenario: S&P 500 Index ETF
ETF: Vanguard S&P 500 ETF (VOO)
Initial Investment: $10,000
Expected Annual Return: 10% (historical S&P 500 average)
Expense Ratio: 0.03%
Duration: 10 years
Annual Contribution: $1,200 ($100/month)
Expected Results
Total Invested: $22,000 ($10,000 + $1,200 × 10 years)
Future Value: ~$39,500
Total Gain: ~$17,500
Total Expense Costs: ~$120 over 10 years
Effective Annual Return: 9.97% (after 0.03% expense ratio)
Net Profit: ~$17,380
Year-by-Year Growth
| Year | Balance | Gain |
|---|---|---|
| 1 | $11,161.96 | $1,161.96 |
| 2 | $12,458.92 | $2,458.92 |
| 3 | $13,906.59 | $3,906.59 |
| 4 | $15,522.48 | $5,522.48 |
| 5 | $17,326.12 | $7,326.12 |
| 6 | $19,339.34 | $9,339.34 |
| 7 | $21,586.48 | $11,586.48 |
| 8 | $24,094.73 | $14,094.73 |
| 9 | $26,894.43 | $16,894.43 |
| 10 | $30,019.45 | $20,019.45 |
Expense Ratio Comparison
Lower expense ratios mean more money stays invested and compounds over time.
ETF Investment Tips
Choose low-cost ETFs to minimize expense drag
Diversify across different asset classes and sectors
Reinvest dividends for compound growth
Consider tax efficiency of ETFs vs mutual funds
Regular contributions build wealth over time
Index ETFs often outperform actively managed funds
Understanding ETF Investments
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment fund that trades on stock exchanges, much like individual stocks. ETFs hold a basket of assets such as stocks, bonds, commodities, or a combination, providing instant diversification.
Why Invest in ETFs?
- •Diversification: One ETF can hold hundreds or thousands of securities
- •Low Costs: Generally lower expense ratios than mutual funds
- •Liquidity: Trade throughout the day at market prices
- •Tax Efficiency: Generally more tax-efficient than mutual funds
- •Transparency: Holdings are disclosed daily
Understanding Expense Ratios
The expense ratio is the annual fee charged by the ETF, expressed as a percentage of your investment.
Example: A 0.10% expense ratio on a $10,000 investment = $10 per year
Impact of Fees Over Time
While a 0.5% difference in expense ratios may seem small, it compounds significantly over time:
$10,000 invested for 30 years at 8% return:
- • 0.05% expense ratio: ~$98,000
- • 0.50% expense ratio: ~$88,000
- • 1.00% expense ratio: ~$79,000
That's a $19,000 difference from fees alone!
Types of ETFs
ETF vs Mutual Fund
| Feature | ETF | Mutual Fund |
|---|---|---|
| Trading | All day at market price | End of day at NAV |
| Expense Ratio | Generally lower (0.03%-0.50%) | Generally higher (0.50%-2.00%) |
| Minimum Investment | One share price | Often $1,000-$3,000 |
| Tax Efficiency | More tax-efficient | Less tax-efficient |
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