Do ETFs have fees?
Yes, ETFs have management fees. These fees are usually referred to and the ‘expense ratio. These are often shown as a percentage.
ETFs are managed by investment companies that charge a fee for their service. The companies make sure the money in the ETF is invested in the desired style of the investors. The fee covers all operational costs associated with managing the ETF.
If an ETF that has an expense ratio of 0.10%, that means that for every $100 you invest, you pay 10 cents. If you invested $1,000 in this fund, the fee would be $1.
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