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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.

How do I know if an ETF has a net expense ratio?

You can find a fund's net expense ratio by entering the fund's ticker symbol on Yahoo Finance or other similar apps. The ETF page will display the net expense ratio and many other pieces of information about the ETF. If that expense ratio is above 0.24%, then it’s above the average for ETFs, specifically (not including mutual funds).

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