Report post

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 an expense ratio?

An expense ratio is a measure of a fund’s operating expenses. Expressed as a percentage, an expense ratio tells an investor how much they’ll pay over the course of a year to own a mutual fund or an ETF. These expenses pay for costs associated with fund operation, such as marketing, advertising, and management of the fund portfolio.

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.

The World's Leading Crypto Trading Platform

Get my welcome gifts