Skip to content
OpenFactsheet
Analyze

The Factsheet Tricks, 3 of 10

Before-fee returns

Gross figures look better than what an investor actually receives.

What it is

A return "before fees" (gross) describes the portfolio, not your account. What you get is the return after all costs (net). Over many years the difference compounds.

Why it works

  • In the SEC's own example, a 1% annual fee instead of 0.25% leaves about $29,000 less after 20 years on $100,000.E4
  • US rules bar showing gross performance in an adviser's advertisement unless net performance is shown too.E22
Example Growth FundFactsheet, page 1

Illustration, not a real fund

  • Strong long-term growth*

    *“Gross” means before fees, not what an investor received. In the SEC's own example, a 1% yearly fee instead of 0.25% leaves about $29,000 less after 20 years on $100,000.E4

*Performance shown gross of fees.

How to spot it

  • Check whether each figure says "net" or "gross".
  • Ask for the total yearly cost in money terms for the amount you would invest.

What OpenFactsheet does

Can't tell from the numbers whether returns are net or gross, so every result asks you to check. The quick overview includes a note on fees.

Get a free second opinionTry the example

Sources

  • E4 U.S. SEC, Office of Investor Education and Advocacy. Investor Bulletin: How Fees and Expenses Affect Your Investment Portfolio (updated July 2025).
  • E22 U.S. SEC (2020). Press release 2020-334, Investment Adviser Marketing Rule. U.S. SEC (2021). Investment Adviser Marketing, final rule, 86 FR 13024. ESMA (2021). Guidelines on marketing communications under the Regulation on cross-border distribution of funds, ESMA34-45-1272.

Share this trick

Share on X Share on LinkedIn Email

Your money deserves more than a sales pitch. These are techniques, not accusations. We don't name or rate any fund or firm.

OpenFactsheet does not name, rate or recommend any investment or firm. The practices described are documented in research and regulation; see Sources.