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If you sell an ETF before a year, intraday or in a swing trade, then is the fee prorated or is that just the flat rate you pay when you sell, when you buy or does the broker pay it at some point in time? Is the fee a percentage of the initial amount of capital traded plus gains or losses?

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  • are you talking about the expense ratio or some sort of broker fees?
    – jesse_b
    Mar 4, 2023 at 10:28

1 Answer 1

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The fund expenses are taken directly from the fund on a regular basis (varies from fund to fund), often monthly. They are also usually reflected in real time.

For example say you have a fund with a total of $1 billion in assets and a 0.1% expense ratio. That is $1 million per year so:

  • The fund net assets would be reported as 999,000,000
  • The fund management would remove $83,333 from the fund monthly (or the appropriate number on their designated schedule)
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  • The price should reflect the accrued expenses, similar to the price drop on the ex- dividend date.
    – 0xFEE1DEAD
    Mar 4, 2023 at 16:12

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