I see that ETFs do work very similar to diversification of individual stocks following either an industry or an index. I am thinking of changing my strategy to reduce my cost of investing which at this point is quite high, around 1.5%.
I will like to know if I go for the ETFs will the ETF fund charge me a management fee even if I paid a broker a transaction fee to buy securities for that ETF?
Here is what my trading site has to say about it:
Folio Investing has a solution — with the Folio Unlimited Plan and our trading windows, you'll never pay another commission to invest in your favorite ETFs.
Of course Folio Unlimited Plan is not what I am going to pay, but if I choose their not-unlimited plan, then I will only pay $4 per trade.
Any observations are welcomed.