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?
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.