Exchange-traded funds (ETFs) and mutual funds both come with ongoing costs, but not all investors will understand exactly how these costs are calculated. A fund’s expense ratio is simply the annual ...
When you invest in any fund, you’ll likely encounter an “expense ratio.” This is a fee taken annually by the fund provider for managing and operating the ETF. The expense ratio is expressed as a ...
The average expense ratio for passively managed exchange-traded funds is 0.14%, and for actively managed ETFs, it's 0.44%, according to Morningstar Direct. While low fees are important because the ...