Investing: funds, fees and protections

Index funds vs active funds, ETFs vs mutual funds, how the expense ratio affects returns, dollar-cost averaging and what SIPC and FDIC protect.

Figures from official sources · Checked 30 September 2026

$500,000SIPC protection limit ($500,000 (incl. $250,000 cash))

$250,000 per depositor, per bank, per categoryFDIC deposit insurance

Annual fees as % of assetsExpense ratio

📈$500,000SIPC protection limit

💵$250,000 per depositor, per bank, per categoryFDIC deposit insurance

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🎯Annual fees as % of assetsExpense ratio

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Item	Figure	Source
SIPC protection limit	$500,000 (incl. $250,000 cash)	SIPC / Investor.gov
FDIC deposit insurance	$250,000 per depositor, per bank, per category	FDIC
Expense ratio	Annual fees as % of assets	Investor.gov / SEC

Each figure links to the guide that explains it and lists the official source. Rates and limits change — always confirm with the source or provider.

Are investments FDIC-insured?

No. Investments can lose value. SIPC protects customers if a member brokerage fails but not against market losses.

What is an expense ratio?

A fund’s annual operating expenses as a percentage of assets, deducted from the fund and reducing your returns.

Index fund or actively managed fund?

Index funds aim to match a market index at low cost; active funds try to beat it and usually charge more. Compare expense ratios and holdings.

What is dollar-cost averaging?

Investing a fixed amount at regular intervals. It builds a habit but does not guarantee gains or prevent losses.

General information, not financial, tax or legal advice. See our editorial policy and disclaimer.