Updated 2026-09-19

ETF Comparator: Fees, Returns and Performance

Compare two ETFs on gross returns, management fees and net long-term performance. Visualise the impact of fees on your capital.

ETF 1

Name

Management fees (%/year)

Expected gross return (%/year)

ETF 2

Name

Management fees (%/year)

Expected gross return (%/year)

Initial capital

€

Duration: 20 years

5 years30 years

The best-performing ETF over 20 years:

ETF S&P 500

Capital difference: 22 027 €

ETF MSCI World

Final capital43 437 €

Cumulative fees3 173 €

Net return7,62 %

ETF S&P 500Best

Final capital65 464 €

Cumulative fees1 811 €

Net return9,85 %

Initial capital

10 000 €

Capital difference

22 027 €

In favour of ETF S&P 500

Simulation period

20 years

Year	ETF MSCI World	ETF S&P 500	Gap
1	10 762 €	10 985 €	223 €
2	11 582 €	12 067 €	485 €
3	12 465 €	13 256 €	791 €
4	13 414 €	14 561 €	1 147 €
5	14 437 €	15 996 €	1 559 €
6	15 537 €	17 571 €	2 034 €
7	16 721 €	19 302 €	2 581 €
8	17 995 €	21 203 €	3 208 €
9	19 366 €	23 292 €	3 926 €
10	20 842 €	25 586 €	4 744 €
11	22 430 €	28 106 €	5 676 €
12	24 139 €	30 875 €	6 736 €
13	25 978 €	33 916 €	7 938 €
14	27 958 €	37 256 €	9 299 €
15	30 088 €	40 926 €	10 838 €
16	32 381 €	44 957 €	12 577 €
17	34 848 €	49 386 €	14 537 €
18	37 504 €	54 250 €	16 747 €
19	40 361 €	59 594 €	19 232 €
20	43 437 €	65 464 €	22 027 €

Why are management fees so important?

ETF management fees (called TER - Total Expense Ratio) are deducted annually from the fund's assets under management. Even if the difference between two ETFs seems minimal (for example 0.20% vs 0.40%), the impact compounds considerably over the long term due to the compound interest effect.

On 10,000 euros invested for 20 years with a gross return of 8%, an ETF with 0.20% fees generates a final capital of approximately 45,600 euros, while an ETF with 0.40% fees generates only 44,300 euros. The 1,300 euro difference may seem modest, but it represents the equivalent of more than 13% of the initial capital, solely due to a 0.20 percentage point difference in annual fees.

Beyond the stated management fees, you should also consider the tracking error (deviation from the benchmark index), the bid-ask spread (gap between buy and sell prices) and the replication method (physical vs synthetic) which can affect the ETF's actual performance.

Questions fréquentes

What is an ETF's TER?

The TER (Total Expense Ratio) is the total annual cost of holding an ETF, expressed as a percentage of assets under management. It includes management fees, administrative fees and other operational costs. A TER of 0.20% means that 20 euros are deducted annually for every 10,000 euros invested.

Is a cheaper ETF always better?

Not necessarily. A cheaper ETF may have a higher tracking error (it reproduces the index less faithfully), lower liquidity or insufficient assets under management (risk of closure). You should compare fees but also replication quality, assets under management and fund liquidity.

Physical or synthetic replication: what's the difference?

A physically replicated ETF holds the securities in the index. A synthetic ETF uses a swap (exchange contract) to reproduce the performance. Synthetic replication can be more precise and provide access to markets not normally eligible for the PEA (such as the S&P 500), but it introduces counterparty risk.

How to compare the actual performance of two ETFs?

Compare the tracking difference (gap between the ETF's performance and that of the index over one year). This is a more reliable indicator than the TER because it captures all actual costs. An ETF with a TER of 0.30% but a tracking difference of 0.20% is effectively cheaper than an ETF with a TER of 0.20% and a tracking difference of 0.35%.

Sources and references

[1]AMF (French Financial Markets Authority) - ETF Guide
[2]ESMA - UCITS regulation on listed index funds
[3]Morningstar - Study on the impact of management fees

Disclaimer: This comparator provides an estimate based on constant return assumptions. Past performance is not indicative of future results. Investing in ETFs carries a risk of capital loss. Actual fees and returns may differ from estimates. Consult a financial advisor for personalised recommendations.

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