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Lower fees in an ETF typically indicate a reduced cost for investors. When investors are faced with lower management fees and operating expenses, they retain a larger portion of the returns generated by the ETF. This is particularly important in the long term, as lower fees can significantly impact overall investment performance and net returns, especially when compounded over time.

It's worth noting that lower fees do not inherently guarantee higher potential returns, as returns are influenced by market performance and the specific assets held within the ETF. Similarly, complexity in the investment strategy is not directly related to fees; many low-cost ETFs utilize straightforward, passively managed strategies. Lastly, trading volatility is more tied to market conditions and the specific security rather than the fee structure; lower fees don't directly cause increased volatility. Therefore, recognizing that lower fees effectively reduce the cost for investors is key to understanding the financial benefits associated with investing in ETFs.