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How Do ‘Trading Costs’ within the ETF Differ from the Stated Expense Ratio?

The stated expense ratio covers the fund's operating expenses, management fees, and administrative costs. Trading costs, which include brokerage commissions and the bid-ask spread incurred when the fund buys or sells its underlying assets, are not included in the expense ratio.

These costs are reflected indirectly as a reduction in the ETF's overall performance.

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