Why small fees make a big difference
An ETF’s fee comes out of your balance every year, so you lose the fee and the growth that money would have made. Over decades that compounds. A 0.10% difference looks tiny on $10,000, but on a growing balance over 20 or 30 years it can add up to thousands of dollars.
When a higher fee can be worth it
- Different exposure. NDQ costs more than IVV, but it holds a different set of companies. Compare what you own, not just the fee. See IVV vs NDQ.
- Currency hedging. Hedged ETFs cost a bit more. Whether that’s worth it depends on the Australian dollar. See hedged vs unhedged ETFs.
- All-in-one convenience. DHHF or VDHG cost more than building it yourself, but they rebalance for you.
For ETFs that cover much the same market, like VGS and BGBL or VAS and A200, the lower fee is a reliable head start. See all our ETF comparisons, or work out how to build a $10k ETF portfolio.
Our free portfolio report shows your blended fee against DHHF and A200, plus your overlap and performance.
Frequently asked questions
How much do ETF fees really cost?
More than the percentage suggests, because fees come out every year and the money lost can’t grow. On $10,000 plus $500 a month for 20 years at 7% a year before fees, a 0.48% fee leaves you about $15,000 worse off than a 0.04% fee, including the growth you miss.
How are ETF fees charged?
ETF management fees (the management expense ratio, or MER) are taken out of the fund’s assets each day, so you never see a bill. They show up as a slightly lower return than the index. Brokerage, when you buy or sell, is separate.
What is a low fee for an ETF in Australia?
Broad index ETFs can cost as little as 0.03–0.10% a year (for example VTS, A200, IVV and BGBL). All-in-one diversified ETFs are usually 0.19–0.27%. Thematic and active ETFs are often 0.40–1.00% or more.
Is the cheapest ETF always the best?
Not always. Two ETFs can track different indexes, hold different companies or hedge currency differently, which can matter more than a small fee gap. But for ETFs covering much the same market, a lower fee is a reliable head start.
Does this calculator include brokerage or tax?
No. It compares management fees only, using the same return before fees for both ETFs. Brokerage, buy-sell spreads and tax are extra.
General information only, not personal advice. Results are illustrations using the return you enter; actual returns vary and aren’t guaranteed. Management fees only: brokerage, buy-sell spreads and tax are not included. Fees from the TMX Australia funds report (September 2026) and may change; check the PDS. Past performance is not a reliable indicator of future performance.