Forbes says: "The iShares fund from BlackRock ticker ITOT will over the course of a decade chip only $6 out of a $10,000 investment."

How is this $6 calculated?

The web page for the fund says: "Expense Ratio: 0.03%". Does this mean $3 yearly for 10,000 investment? Wouldn't this mean $30 in 10 years?

  • .03% of $10k over 10 years is indeed $30. – Bob Baerker Jan 14 at 14:28
  • In some funds, drag is lower than the expense ratio (for example, lending shares of the component equities to short sellers typically generates some income which can pay part of the expenses). I don't know if that's what is going on in this particular calculation. – Ben Voigt Jan 14 at 15:32
  • Maybe you should link to the Forbes article that makes this assertion. – quid Jan 14 at 18:39

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