Tag
#compounding
2 articles
-
Expense Ratio Impact on Returns: The Arithmetic of a Recurring Fee
The expense ratio is deducted daily from NAV, so it never appears as a bill. Over long horizons the drag compounds. Here is the arithmetic, shown neutrally, and its limits.
Read article -
What Is CAGR? Compound Annual Growth Rate, Explained
CAGR is the compound annual growth rate: the single steady yearly rate that would take a starting value to an ending value. It smooths the path completely.
Read article