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The expense ratio is the annual cost of owning a mutual fund or ETF. It is essentially a management fee, paid by the investor to the firm. The fee is expressed as a percentage of your investment ...
One share of the ETF gives buyers ownership of all the stocks or bonds in the fund. For example, if an ETF held 100 stocks, then those who owned the fund would own a stake – a very tiny one ...
Exchange traded funds are toted as a cheap and efficient investment vehicle that anyone can easily access. However, not many investors fully understand the elements that go into the total cost of ...
Each fund has a higher expense ratio of 0.1% compared to 0.03% for the Vanguard S&P 500 ETF (NYSEMKT: VOO) -- but the difference is only $7 in fees for every $10,000 invested.
Those with expense ratios below 0.2% (meaning investors pay only $20 per $10,000 investment) are generally considered low-cost ETFs. Obviously, paying $20 in annual fees instead of $100 saves money.
An exchange-traded fund (ETF) deducts its expenses from the total value of the shares. These fees are typically expressed as a percentage of the fund's average net assets and referred to as the ...