Managed Portfolio vs Vanguard Index Fund

See the true cost of advisor fees - including opportunity cost

Understanding Vanguard Index Funds

A Vanguard index fund tracks a broad market index (for example, VTSAX follows the total U.S. stock market) rather than trying to beat it with stock picking. Because there is no expensive active management layer, index funds often charge around 0.04% per year compared with 1% or more for many managed portfolios.

Already in retirement (or modeling withdrawals)? See how AUM fees change the 4% rule in Safe Withdrawal Rate & Fee Impact.

Your Portfolio Details

Current Portfolio Value

Enter your exact portfolio value

Advisor Fee (%)

Typical managed portfolio fee: 1.0%

Vanguard Index Fund Expense Ratio (%) Typical Vanguard index fund expense ratio is about 0.04%. Adjust if you use a different low-cost fund.

Investment Timeline (Years)

Expected Annual Return (Before Fees) (%)

Historical S&P 500 average: ~10% (we use conservative 8%)

The True Cost of Your Advisor Fee

Fees & Costs

Managed Portfolio

Vanguard VTSAX
0.04% fee

You're Losing

Year 1 Fee

Total Fees Paid

Portfolio Value

Managed Portfolio

Vanguard VTSAX
0.04% fee

You're Losing

Year Portfolio

Portfolio Growth Over Time

Cumulative Fees Paid Over Time

Key Insights

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Direct Fees: You'll pay more in advisor fees over years.

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Lost Growth: Beyond the fees themselves, you miss about of compounding those dollars could have earned in the market.

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What Your Advisor Must Deliver: To justify their fee, your advisor must beat Vanguard's return by annually. Most don't.

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