ETF Expense Ratio Explained: Understand Trading Costs

ETF (Exchange-Traded Fund) expense ratios are fees associated with owning or trading an ETF, usually expressed as a percentage of the total market value of the ETF. ETF expense ratios are expressed as an annual percentage of assets in the fund, and they can vary depending on the size and type of ETF. Generally, larger and more actively traded ETFs have higher expense ratios than smaller, less actively traded ETFs. Expense ratios help to explain the cost of investing in an ETF, and are an important factor to consider when evaluating the potential return and risk associated with a particular ETF.

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