Term
Expense ratio
What a fund charges you every year, as a percentage of what you have invested. It is taken out of the fund automatically, so you never see the charge — which is exactly why it deserves a look.
In pesos: 0.25 % a year on $50,000 MXN is $125. Over thirty years, small percentages stop being small.
Where to go deeper
2/2 6 min Read ETFs: five hundred companies in one go What an ETF is, why it diversifies, what its fee really costs you, two real examples (an S&P 500 ETF and NAFTRAC), and how it differs from picking single shares.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.