etf hidden cost comparator

The problem

Headline expense ratios (TER) rarely tell the full story of what an ETF actually costs you. Hidden factors like tracking error, wide bid-ask spreads, and dividend leakage can silently erode your returns, making a "cheap" fund more expensive than its competitors.

What it does

• Analyzes 7 critical cost dimensions including TER, tracking error, and bid-ask spreads.
• Evaluates structural risks such as physical versus synthetic replication methods.
• Estimates dividend leakage based on fund domicile and distribution policies.
• Generates a normalized comparison table to visualize all-in costs.
• Calculates total cost of ownership estimates based on holding periods.

Why this beats prompting it yourself

Generic prompts often miss technical nuances like annualized spread costs or the counterparty risk of synthetic replication. This skill enforces a structured forensic audit that accounts for slippage and tax efficiency, ensuring you don't overlook technical drag that simple GPT prompts ignore.

Use cases

• Compare two ETFs tracking the same index to find the most efficient vehicle.
• Evaluate if switching funds is worth the trade costs and tax implications.
• Audit a portfolio for synthetic replication or low-liquidity risks.
• Assess the impact of dividend withholding taxes on international holdings.

Known limitations

Calculations depend on the availability of recent prospectus and exchange data. Tracking error is backward-looking and spreads can spike during periods of high market volatility.