Fees Waterfall Effect


Now that Nasdaq 100 is nearing a 50% drawdown, Asset Owner and Investors should question the impact of fees on their portfolios if Nasdaq 100 decides to go sideways like in 2000-2010. All the annual range of fees from 0.1% to 10.92% damage and can decimate long term wealth!

Interest rate risk, currency risk, inflation risk and market risk are all small when compared to fees risk. If markets don’t do anything from now, Investors can lose another 10-60% by the year 2030 just by paying annual recurring fees. The chart below illustrates the fall in the portfolio value, assuming market returns are constant.