Market Pulse: The SEC Is Meeting on Private Markets and Index Funds (2026-06-04)

Location: Market Pulse: The SEC Is Meeting on Private Markets and Index Funds

What was wrong: The Real Cost fee-drag example stated that $50,000 plus $500 a month at 7% before fees, over 30 years, grows to about $640,000 at a 0.10% expense ratio and $596,000 at 0.60%, a gap of $44,000.

What it now says: Recomputed under the site's Real Cost convention, the same inputs reach about $992,000 at a 0.10% expense ratio and $882,000 at 0.60%, a gap of roughly $110,000. The total contributions ($230,000) and the conclusion, that the fee gap is real and large, are unchanged.

Why it was wrong and how it was caught: The original ending balances understated the contributions and were too low. Because this example pairs a $50,000 starting balance with $500 monthly contributions, the site's Real Cost convention compounds the whole balance monthly at the net rate divided by 12, contributions at end of month, with the net rate equal to 7% minus the expense ratio (matching the SEC Investor.gov compound interest calculator). Under that convention the corrected figures are about $992,000 and $882,000. Caught during a Real Cost number audit on June 4, 2026.

Primary source: SEC Investor.gov compound interest calculator (https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator)