/biz/ - Business & Finance

>>55614185
>>55614208
If you go to any ETF's actual website with its stats, you'll see one very important one called the "Expense Ratio". This is the % "fee", basically, that you are charged when you enter the fund (it is deducted from the price, baked in essentially).

This amount charged for every buy is given to the fund manager, admin costs, basically keeps the lights on for the company. Its always good to keep an eye on the exp ratio when looking at multiple ETFs that do the same thing. This is why there is always a price war race to the bottom to offer the lowest Exp Ratio on high volume popular ETFs. Its a win-win, you get a lower exp ratio, that ETF beats its competitors and is a bigger name because they offer a better deal. Check out SPYs Exp Ratio, this is why they're the most traded and well known. Vanguard is also known for offering rock bottom exp ratios.

Lastly, you'll often see insanely high exp ratios on more exotic or wacky out there ETFs, thematic shit, things that have almost no competitors. Basically flavor of the moment themes collected in an ETF that fund managers can charge more on because of hype in the moment.