MER Impact Over Time
See how annual fund expenses compound into a growing gap in your savings. Start with VFV.TO, look up another ticker, or enter an MER manually and compare it with 1.5%, 2% and 3% fees.
Fund MER
Optional web-assisted lookup requires sign-in. Availability varies; manual entry always works. Editing the ticker alone does not change the applied MER.
Vanguard S&P 500 Index ETF (VFV.TO) · MER 0.08% · checked 2026-10-25. Review issuer source. Reported MERs can change or differ between document dates; verify the latest disclosure.
Your investment assumptions
Compare annual MERs
All scenarios use the same gross return and starting amount. No contributions or withdrawals are assumed.
Portfolio growth after MER
Same assumed gross return, different annual costs. These are illustrations, not actual fund performance.
- No MER (0%)
- Selected MER (0.08%)
- Comparison 1 (1.5%)
- Comparison 2 (2%)
- Comparison 3 (3%)
How the cumulative MER impact grows
The gap versus the same investment with no MER: estimated fees plus growth those fees could have earned.
- Selected MER (0.08%)
- Comparison 1 (1.5%)
- Comparison 2 (2%)
- Comparison 3 (3%)
After 30 years
Value at your selected MER
$561,486
Selected MER impact versus no MER
$12,863
Fees plus foregone growth, not just fees charged.
| Scenario | Final value | Estimated fees charged | Foregone growth | Total MER impact | Less than selected |
|---|---|---|---|---|---|
| No MER (0%) | $574,349 | $0 | $0 | $0 | -$12,863 |
| Selected MER (0.08%) | $561,486 | $6,236 | $6,627 | $12,863 | $0 |
| Comparison 1 (1.5%) | $374,532 | $91,511 | $108,307 | $199,817 | $186,954 |
| Comparison 2 (2%) | $324,340 | $112,170 | $137,839 | $250,009 | $237,147 |
| Comparison 3 (3%) | $242,726 | $142,726 | $188,897 | $331,623 | $318,760 |
Why a small percentage becomes a large dollar amount
MER is an annual percentage of fund assets, not a one-time charge. As your portfolio grows, the dollar cost generally grows too. Money deducted for expenses also stops earning returns, creating a widening compound-growth gap.
This simplified annual model uses: ending balance = opening balance × (1 + gross return − MER), with percentages converted to decimals. Estimated annual fees = opening balance × MER. Total MER impact is the no-MER balance minus the after-MER balance; foregone growth is that gap minus accumulated fees. Real funds accrue expenses through the year, so actual fee dollars differ.
Enter a return before expenses. Published fund returns are generally already net of MER; subtracting MER from them again would double-count it. The no-MER line is a hypothetical benchmark, not a purchasable fee-free investment.
VFV.TO is the TSX-listed Vanguard S&P 500 Index ETF used as the starting example. The 1.5%, 2% and 3% comparisons are hypothetical fee levels, not identified competing funds. Equal gross returns isolate cost; different investments can have very different holdings, risks and performance.
Assumes a constant nominal return and MER, reinvested returns, no deposits or withdrawals, and no taxes, inflation, commissions, trading expenses or separate advice fees. Estimates are not forecasts or investment advice. MER lookup is web-assisted and may be incomplete or outdated; confirm the issuer disclosure and exact fund series, or enter the MER manually.