Calculate the long-term impact of management fees (MER) on your investment returns. Compare actively managed funds vs index ETFs for Australian investors.
| Metric | Active (high fee) | Index ETF (low fee) |
|---|
Most actively managed funds charge 1–2% MER. Australian index ETFs (Vanguard, iShares, BetaShares) charge 0.03–0.25%. The fee difference compounds dramatically over time — a 1.5% fee difference on $100,000 over 20 years at 8% can cost over $80,000.
| Fund type | Typical MER |
|---|---|
| Active Australian equity fund | 1.0–2.0% |
| Australian index ETF (ASX 200) | 0.07–0.20% |
| International index ETF | 0.07–0.30% |
| Super (industry fund, balanced) | 0.50–1.0% |