This 1 Simple Move Could Turn $100K Into $474,800

It’s a tired piece of “wisdom” you hear from personal-finance gurus over and over: you need to invest in low-cost, passive index funds to get the highest return.

Too bad it’s completely false!

Today we’re going to look at how obsessing over fees can actually cost you tens of thousands of dollars. Then I’ll name a fund that could get you big gains and pays a dividend north of 6%. What’s more, this unusual fund, a closed-end fund (CEF), to be specific, gives you that steady cash payout while holding some of the biggest stocks out there—I’m talking about household tech names like Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN).

CONFUSING FEES WITH PERFORMANCE
First off, though, our fee myth starts with a simple assumption: the lower the fees on a fund, the bigger your return. On its face, the myth makes sense. For instance, let’s say one fund has a 0.1% expense ratio and another has 1%. If you invest $100,000 in the first fund, the manager will take out $100 from your share of the fund’s portfolio to pay your fees; the second fund will take out $1,000, or 10 times as much.

A SCARY, BUT MISLEADING CHART
Fund Fees Chart

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