How does an ETF expense ratio work?

[bezzer11]

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]

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.