How often should I check expense ratios?

Annually is sufficient. ERs change infrequently, but fund companies occasionally raise fees and new lower-cost options emerge. A December review catches all meaningful changes.

What is the most commonly failed check?

Check #1 (expense ratios) and #4 (401(k) fund selection) fail most often. Many investors never look at the ER of their default 401(k) funds, paying 0.50-1.00%+ when 0.03-0.08% alternatives exist in the same plan.

Should I do the checklist for small accounts under $10,000?

Yes for the habit. The dollar impact on small accounts is minor, but the fee habit established early prevents high-fee accumulation as the portfolio grows.

Is there an app that automates the ETF fee checklist?

Personal Capital (now Empower) tracks expense ratios across accounts and shows blended portfolio ER. Morningstar portfolio tools also aggregate fund costs. These reduce manual checklist work but do not replace the judgment calls in checks #3, #5, and #9.

What triggers warrant an immediate checklist outside the annual review?

Job change (rollover decision), large portfolio addition ($25,000+), fund closure/merger, advisor change, or discovery of a major new low-cost alternative. These events warrant immediate review rather than waiting for the annual December audit.

The ETF Fee Checklist: 10 Things to Verify Annually

A healthy ETF portfolio runs automatically 364 days a year and requires one thoughtful annual review. This 10-point checklist keeps your fee structure calibrated to 2025 benchmarks.

Key Data and Analysis

ETF fee annual checklist with pass criteria

#	Check Item	Pass Criteria
1	All fund expense ratios	Index funds below 0.10%; active below 0.30% if justified
2	No duplicate fund holdings	No two funds with 90%+ overlapping holdings
3	Account type optimization	Roth IRA holds high-growth or non-qualified income assets
4	401(k) fund selection reviewed	Using lowest-ER option available in plan
5	Advisor fees assessed	If any, below 0.50% AUM or flat fee under $5,000/year
6	Fund tracking error checked	Under 0.10% annual tracking error for index funds
7	Total portfolio blended ER	Under 0.10% for most investors; under 0.15% for factor tilt
8	New lower-cost alternatives exist?	Check Morningstar for cheaper equivalent in each category
9	Any new fee waivers expiring?	Net ER matches gross ER (no waivers about to expire)
10	Annual fee cost in dollars calculated	Total annual fee under $500 for most portfolios under $500K

💡The 30-Minute Annual Review Catches Everything

Set a December calendar reminder. In 30 minutes: run through all 10 checks, calculate total annual fee cost, identify any new lower-cost alternatives, and make any necessary switches in tax-advantaged accounts. Then close the laptop for 364 days.

Scenarios and Comparison

Checklist scoring interpretation and recommended actions

Score	Meaning	Action
10/10 checks passed	Portfolio is fee-optimized	Maintain; review again next December
7-9 checks passed	Minor improvements available	Fix failing checks this month
4-6 checks passed	Significant fee improvement possible	Priority audit this week
0-3 checks passed	Major fee drag — act urgently	Full portfolio fee overhaul immediately

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The ETF Fee Checklist: 10 Things to Verify Annually

Key Data and Analysis

Scenarios and Comparison

Frequently Asked Questions

Frequently Asked Questions

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ETF Fees on a $100,000 Investment: 25-Year Analysis

ETF Fees on a $500,000 Portfolio: Where Every 0.1% Matters