What is a low cost index fund?

Investing and Markets šŸ“ˆ
1

Iā€™ve heard the saying ā€œInvest in low cost index fundsā€. But what is defined as low cost? Is there an agreed number? Is 0.65% low cost? What about 0.80%?

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2

Itā€™s not an absolut metric. There are etfs with only 0.05% charge. But if the etf has a yearly return of 50% with a TER of 0.8% and the others all only return 10%, then that would still be the cheapest imho.

3

Total expense ratio (TER) under 1%, ideally around 0.2-0.5% and lower.

There are ETFs with a TER of 0.05% or lower.