§ Calculator · Investment

MER drag on your portfolio

What this is

How much do management fees actually cost you?

MER (Management Expense Ratio) is the annual fee a fund charges as a percentage of your assets. Sounds small. Compounded over 25-30 years, even a 1% difference can erase 25-30% of your final balance.

·Bank mutual fund: 2.0-2.5% MER. Common; expensive.
·Robo-advisor (Wealthsimple, Questrade): 0.4-0.7% combined (management + ETF fees).
·DIY index ETF (VEQT, XEQT, XGRO): 0.20-0.24%. The Canadian standard.
·A 2% MER vs 0.20% baseline costs $200,000+ on a $500k portfolio over 25 years.

Starting balance (CAD)Annual contributionYearsExpected return (gross)

Your MER

Final @ your MER

$1,041,493

Final @ 0.10% baseline

$1,543,485

Lost to fees

$501,992

Effective annual drag: 0.02%. Approximate total fees paid: $284,942.

Educational. Not financial advice. Real-world fee comparison also weighs advice quality + tax-loss harvesting + behavioural coaching that some higher-fee products bundle.