ETF Fee Analyser
Calculate the real dollar cost of ETF fees over time. Compare MERs, model fee erosion, and see what your ETF actually costs. A mathematical illustration only, not financial advice.
General information only, not financial advice
ETFLens does not hold an Australian Financial Services Licence (AFSL) and does not provide financial product advice. The information and tools on this page are general information only and do not take into account your objectives, financial situation or needs. Before investing, read the relevant Product Disclosure Statement (PDS) available from the fund manager. Consider seeking advice from a licensed financial adviser before making any investment decision.
Fee comparison, common ASX ETFs
General information only, not financial advice
Projections use a fixed assumed annual return that you set, this is a hypothetical figure, not a forecast. Actual investment returns fluctuate, can be negative, and will differ materially from the projection shown. This tool is for general information only, not financial advice. Always consult a licensed financial adviser before making any investment decision. Terms of Use
ETFLens Pro
See the total fee drag across your whole portfolio
Portfolio Builder calculates combined fees, overlap and sector exposure across all your ETFs.
What is an ETF management fee (MER)?
An ETF's management expense ratio (MER) is the annual percentage the fund charges to cover its running costs - index licensing, administration, custody and the manager's margin. You never receive a bill: the fee is accrued daily and deducted from the fund's assets, so it is already built into the unit price you see. On the ASX, broad-market index ETFs commonly charge around 0.04% to 0.20% p.a., while active, geared or single-theme funds often charge 0.40% to 1.00% or more.
Why small fees compound
A management fee of “less than half a percent” is charged on your entire balance every year, so the dollar cost grows with your balance and every dollar paid in fees can no longer compound for you. The fee difference between a 0.07% and a 0.50% fee on a flat $100,000 balance with no investment return, as a mathematical illustration only:
| Period | Fee difference |
|---|---|
| After 1 year | approximately $430 |
| After 10 years | approximately $4,190 |
| After 30 years | approximately $11,880 |
Mathematical illustration only, not financial advice. Actual returns vary and are not guaranteed, and past performance is not a reliable indicator of future returns. The calculator above lets you model your own balance, fee and assumed return; the “Long-Term Fee Impact” tab charts the gap year by year.
How to reduce the fees you pay on ETFs
There is no single right answer - it depends on your goals - but three factual levers are worth understanding:
- Compare the MER for the same exposure. Two funds tracking a near-identical index can charge meaningfully different fees. For broad-market exposure, low-cost index ETFs sit at the bottom of the fee range.
- Avoid paying twice for the same holdings. Holding two heavily overlapping funds means paying two sets of fees on largely the same companies. The Overlap Checker shows how much two ETFs duplicate each other.
- Remember the MER is not the only cost. Brokerage and the bid-ask spread also matter, especially if you trade often or buy in small parcels. For a long-term, buy-and-hold investor the MER is usually the dominant ongoing cost.
How this tool calculates fee cost
- Published fees only. Each fund's MER comes from the ETFLens database; there is no free-text fee field, so every figure is tied to real fund data.
- An assumed return you control. Your balance is compounded with and without the fee at a fixed assumed annual return, using geometric monthly compounding so the rate you enter is the rate realised.
- Fee drag is the gap. The difference between the two paths is the fee drag shown in the result.
- Base fee versus performance fee. Funds that charge a performance fee are modelled on their base fee, with the performance fee disclosed beside the result.
Every figure is a mathematical illustration only, not financial advice; actual returns vary and are not guaranteed.
The Fee Analyser is free, requires no login, and covers the ASX-listed ETFs tracked by ETFLens. Always check each fund's Product Disclosure Statement (PDS) for the current fee and other costs before making a decision.
Frequently asked questions
What is an ETF management fee (MER)?
The management expense ratio (MER) is the annual percentage an ETF charges to cover its running costs. It is not billed separately - it is accrued and deducted from the fund's assets, so it is already reflected in the unit price. On the ASX, broad-market index ETFs commonly charge around 0.04% to 0.20% p.a., while active, geared or single-theme funds often charge 0.40% to 1.00% or more.
How much do ETF fees cost over the long term?
It depends on your balance and how long you hold. As a mathematical illustration only, a 0.50% MER on a $100,000 balance is approximately $500 in the first year, and because the fee is charged on the whole balance every year it compounds into a much larger cumulative figure over 20 to 30 years. Actual returns vary and are not guaranteed, and past performance is not a reliable indicator of future returns. Use the calculator above for your own numbers.
Do ETF fees come out of my bank account?
No. ETF management fees are deducted from the fund's assets across the year rather than charged to your account, so you never see a separate fee transaction. The cost appears indirectly, as a return slightly below the index the fund tracks.
Is the MER the only cost of owning an ETF?
No. Beyond the MER you may also pay brokerage when you buy or sell and a bid-ask spread (the small gap between the buy and sell price), and some funds report additional transaction costs in their PDS. For a long-term, buy-and-hold investor the MER is usually the largest ongoing cost, which is why this tool focuses on it.
What MER do the cheapest ASX ETFs charge?
The lowest-fee broad-market ETFs on the ASX charge in the region of 0.04% to 0.07% p.a.. Fee is only one factor: index methodology, fund size, liquidity and the exposure itself also differ between funds. Compare the funds you are considering on this page and consider each fund's Product Disclosure Statement.
Is the fee the only thing that matters when comparing ETFs?
No. A lower MER reduces your ongoing cost, but two ETFs with different fees may track different indices, hold different companies and carry different risks. Fee is one objective input among several; whether a fund suits you depends on your own objectives. This page provides general information only, not a recommendation.
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