I need you all to read this and get this once and for all. A few of you are upset about FITZ’s 0.75% expense ratio. I get it. But I need you to stop comparing it to an index ETF because FITZ is not an index ETF. Full stop. If a low expense ratio is your only priority, then stick with VOO, VTI, or the other ETFs I’ve recommended. That’s perfectly fine. You don’t have to buy FITZ. Nobody is twisting your arm. But here’s what you need to understand. FITZ just launched on May 28th. It is literally days old. Actively managed, concentrated ETFs like this one almost always launch at higher fees. The fixed costs of running a fund — research, legal, compliance, technology, and Keith’s time — have to be covered. And when the assets under management are small, that cost falls entirely on the expense ratio. That’s just how it works. The fair comparison isn’t VOO at 0.03%. It’s other actively managed strategies, where 0.75% to 1% or more is completely standard. And I can only imagine what it cost Keith to get this fund off the ground in legal fees and infrastructure alone. The entire 0.75% doesn’t even go to him. A significant portion goes to XFUNDS, the platform this ETF runs on. He is splitting that fee with a lot of people. I also want you to know that I personally asked Keith to make the expense ratio as low as he possibly could. If he set it at 0.75%, that was the floor. And knowing Keith, once enough assets are in this fund, he is exactly the type to lower it. I would love that — because I invested in FITZ myself. But that may take years, and I won’t pretend otherwise. Here is the only thing that truly matters in the end: net-of-fee performance. If Keith’s high-conviction approach outperforms the index over time, 0.75% is worth every penny. If it doesn’t, no fee is low enough. I believe it will outperform. Time will tell. Be patient But here is how you can think about it The .75 annual charge breaks down to 2 cents per day on every $1,000 invested. Also let's just say VOO at 0.03% essentially keeps everything it earns. Fitz at 0.75% gives up 0.72% every year just in fees in comparison to VOO So if VOO averages 7% annually, Fitz needs to average 7.72% annually just to match it — before you see a single dollar of extra gain. Anything below 7.72% and you were better off in VOO in this example Have I not said to you that a managed ETF has to do considerably better than an index fund or it's not worth it. So let's check back in a few years and see Deal

Posted by Suze at 2026-05-31 21:24:09 UTC