How Do 'Trading Costs' within the ETF Differ from the Stated Expense Ratio? ⎊ Path

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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Glossar

Expense Ratio

Ratio ⎊ The expense ratio represents the total annual operating expenses of an investment fund, such as an ETF, expressed as a percentage of the fund's average net assets.

ETF

Asset ⎊ An Exchange-Traded Fund (ETF) within the cryptocurrency space represents a basket of digital assets, mirroring the structure of traditional ETFs but applied to crypto holdings.