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What is an ETF expense ratio?

An ETF's expense ratio indicates how much of your investment in a fund will be deducted annually as fees. A fund's expense ratio equals the fund's operating expenses divided by the average assets of the fund. Typical ETF expense ratios are less than 1%. That means that, for every $1,000 you invest, you pay less than $10 a year in expenses.

What is the average expense ratio for Vanguard mutual funds and ETFs?

The average expense ratio for all of Vanguard's mutual funds and ETFs is currently 0.09%. Mutual funds and ETFs charge their shareholders an expense ratio to pay for operations and fund management. Higher expense ratios eat into nominal returns for investors.

What is a mutual fund Expense ratio?

Mutual fund and ETF expense ratios are calculated and charged annually. As a result of this, a high expense ratio can have a big impact on returns over the long run. While it's important, a fund’s expense ratio is not the only consideration when analyzing and comparing fund investments.

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