Concept
Expense Ratio
4 books in the library reach for this idea - each in its own way. When independent authors converge on one concept, it usually deserves attention.
Money Master the Game
How this book uses it: The annual fee a fund charges as a percentage of assets. Low-cost index funds: 0.03-0.20%. Active funds: 1%+. The difference compounds painfully.
The Bogleheads' Guide to Investing
How this book uses it: The annual cost of a fund. Lower is better - always. The best predictor of future returns.
The Four Pillars of Investing
How this book uses it: The single best predictor of fund performance. Lower costs = higher returns for you.
The Simple Path to Wealth
How this book uses it: The annual fee a fund charges. Index funds: ~0.04%. Actively managed funds: 1%+. That difference compounds devastatingly.
