Simple question - how do expense ratios work? Is there a fee that is calculated regularly, and the amount is taken out of my account? Is it subtracted from the funds earnings?
Context:
My work has recently changed the 401k setup. They will now be charging an annual $52 fee. But, they are offering a new basket of funds with relatively lower expense ratios. It seems like BS to me, but I'm trying to look at it objectively.... I need to understand how Expense Ratios really work.