do etf have fees

ETFs typically have lower fees than actively managed mutual funds, with expense ratios ranging from 0.03% to 1.00% and transaction fees around $0.01 to $0.05 per share.

Oct 20, 2024 at 10:48 am

Do ETFs Have Fees?

Yes, ETFs (exchange-traded funds) have fees, but they are typically lower than the fees associated with actively managed mutual funds. ETF fees can be divided into two main categories:

1. Expense ratio: This is an ongoing annual fee that covers the costs of managing the ETF, including administrative costs, marketing costs, and management fees. Expense ratios can range from 0.03% to 1.00%, but most ETFs have expense ratios of less than 0.50%.
2. Transaction fees: These are fees that are charged when you buy or sell an ETF. Transaction fees can vary depending on the brokerage firm you use, but they are typically in the range of $0.01 to $0.05 per share.

In addition to these two main categories of fees, there may also be additional fees associated with ETFs, such as redemption fees or sales charges. It is important to carefully consider all of the fees associated with an ETF before you invest.

How to Find ETF Fees

You can find the fees associated with an ETF by looking at the prospectus. The prospectus is a legal document that provides detailed information about the ETF, including its investment objectives, risks, and fees. You can find the prospectus on the ETF's website or on the website of the brokerage firm where you plan to buy the ETF.

Comparing ETF Fees

When comparing ETFs, it is important to consider all of the fees associated with each ETF, including the expense ratio, transaction fees, and any additional fees. You should also consider the ETF's investment objectives and risks. By carefully considering all of these factors, you can make an informed decision about which ETF is right for you.