Which drag is more impactful on your returns, MER’s or the behaviour gap drag?

In the last twelve months I cannot pick up a newspaper or read an article online in the financial press that doesn’t focus on fees. The point they make is simple, if you lower your fees your returns will be better so buy low-cost index funds or ETF’s.

Everyone is buying this and looking for investments that have the cheapest cost.

I argue that MER's are not the biggest drag on returns but Behaviour Gap Drag is worse.

What are your opinions?

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