The Hidden Power of Low-Cost Index Funds in Wealth Building
Low-expense ratio index funds, often overshadowed by flashier investment strategies, hold the quiet potential to reshape long-term wealth accumulation. These passive vehicles—tracking benchmarks like the S&P 500—combine broad market exposure with cost efficiency, yet their deepest advantages remain underappreciated.
The compounding effect of fees, even at minuscule percentages below 0.1%, operates as a silent force over time. What appears negligible annually can erode returns substantially across decades. This dynamic underscores the urgency of fee awareness in portfolio construction.