How does an ETF expense ratio work?

bezzer11

Junior member
32 0
I have searched everywhere and cant find an answer. Please help!

So how does an ETF expense ratio work? suppose the expense ratio of XYZ is 1%. If I decide to trade XYZ does that mean 1% is immediately deducted from my purchase? What if I hold it only for a day, how am I charged?
 

pro_fx

Junior member
20 2
I have searched everywhere and cant find an answer. Please help!

So how does an ETF expense ratio work? suppose the expense ratio of XYZ is 1%. If I decide to trade XYZ does that mean 1% is immediately deducted from my purchase? What if I hold it only for a day, how am I charged?
It goes like this:
ETF expense ratio = 1% *365 Days/ 1Day.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock