Type the Excel formula for the value after 10 years of $25,000 in an index ETF earning 6 % gross with a 0.20 % MER.
Type the Excel formula for the value after 10 years of $25,000 in an index ETF earning 6 % gross with a 0.20 % MER.
Answer
=25000*(1+0.06-0.002)^10
43,933.59. The active fund at 2.0 %: =25000*(1+0.06-0.02)^10 = 37,006.11 — a 6,927.48 gap on identical gross returns.
OpenStax, Introduction to Business (CC BY 4.0) §16.6 — ETF vs NAV shape; OpenStax Principles of Finance §11.5 — active vs passive, reference only; ETF creation/redemption as register (verified-facts §2.10 K13); original figures