The main study did not include brokerage, STT, or taxes because those costs can vary from investor to investor depending on the broker, platform, and withdrawal method used.
We wanted the comparison to focus only on the ETF structure versus the index fund structure itself.
That said, we separately ran the calculations including brokerage, STT, and unit-level LTCG tax as well. Even after including all costs, the overall difference still remained fairly small compared to the portfolio size. The index fund stayed slightly ahead mainly because ETF investors had additional transaction-related costs during buying and selling.
Comnsidering the taxes and brokerage charges, which is better at the end while we are withdrawing funds
The main study did not include brokerage, STT, or taxes because those costs can vary from investor to investor depending on the broker, platform, and withdrawal method used.
We wanted the comparison to focus only on the ETF structure versus the index fund structure itself.
That said, we separately ran the calculations including brokerage, STT, and unit-level LTCG tax as well. Even after including all costs, the overall difference still remained fairly small compared to the portfolio size. The index fund stayed slightly ahead mainly because ETF investors had additional transaction-related costs during buying and selling.