How this works

Each month, your balance grows by the expected return minus fees, and then your monthly contribution is added. Over long periods, growth on past growth — compounding — becomes the biggest part of the result.

Why fees matter so much

A 1% yearly fee sounds small, but it is taken from your whole balance every year, including past growth. Try changing the fee from 0.2% to 1.5% and watch the "Lost to fees" figure. That is why low-cost index ETFs are popular with long-term investors.

New to this? Read how to start investing with $500.