A cost typically refers to the price paid to acquire an asset, while an expense is an ongoing expense, such as an employee's salary or rent on a retail space. Further, a cost is often a one-time outlay for something that provides future benefits, whereas an expense is a recurring payme...
Expense ratios reflect what it costs to operate mutual funds and ETFs. Learn more about what an expense ratio is.
Here’s everything you need to know about what a mutual fund is, how it works, and why they could be your most valuable tool for long-term investing.
A net expense ratio is the percentage of an investment that goes toward fees after applying discounts and reimbursements.
The gross expense ratio is the percentage of an investment that goes toward fees before discounts have been applied.
3. Mutual funds charge fees that you need to watch for. Most mutual funds charge anexpense ratio, which is charged as a percentage of your invested money. These days, expense ratios can be very low, such as, say, 0.03%. Some companies, such asFidelity, even offer some mutual funds wit...
An expense ratio is the cost of owning a mutual fund or ETF. Think of the expense ratio as the management fee paid to the fund company for the benefit of owning the fund. The expense ratio is measured as a percent of your investment in the fund. For example, a fund may charge 0.30...
The expense ratio for mutual funds is typically higher than the expense ratios for ETFs. This is because most ETFs arepassively managed. The assets held in them are selected to mirror an index such as the S&P 500, and changes to the selections rarely need to be made. A mutual fund, on ...
While they are commonly referred to as fees, mutual funds charge investors what is called an "expense ratio" as payment for managing the fund. However, understandingmutual fundexpense ratioscan be confusing. There are a variety of factors that contribute to a fund's total expense ratio. It se...
The ETF shareholder is still on the hook for capital gains tax when the ETF shares are sold but the investor can choose the timing of such a sale. ETFs may be more tax-efficient than mutual funds because of the way they're created and redeemed. Types of ETFs ETFs have three ...