Understanding an ETF’s Total Cost of Ownership
February 05, 2019 at 07:00 AM EST
Exchange-traded funds (ETFs) have exploded in popularity over the past ten years, creating fierce competition among fund issuers. The escalating fee war has resulted in much lower expense ratios across different fund classes, giving investors more cost certainty when holding ETFs. However, expense ratios only tell one part of the story. To determine the true cost of your ETF portfolio, you must evaluate other expenses that might not be so apparent at first glance.