What is an expense ratio?
An expense ratio is an annualized fee (written as a percentage of total assets) that funds charge shareholders.
The fee is charged daily by deducting a small amount of a fund’s asset from a shareholder. It covers management fees, administrative expenses and other costs incurred to operate the fund.
These costs are included in the price of the fund, not charged separately.
This is different from commissions or fees a broker may charge to purchase the investment. A fund sponsor has operational costs and the expense ratio covers these costs.
When you invest with Stash, the expense ratio is already factored into the prices you’re seeing.
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