Forumsee logo
Forumsee » Finance and investment » Stocks and Funds » Read message
RSS: Subscribe to RSS

ETF expense ratios. do they matter in this case?

Bogleheads • View forum - Investing - Help with Personal Investments - www.bogleheads.org
I am holding ETF SPY through my Etrade account. I see that the expenses ratio is 0.09%. I pay $4.95 to trade/buy it. Other than this $4.95, which is 0.02% of an overall cost basis of 100 shares at $23760 (237.60 share at the time) does the expense ratio affect this?

Or, should I buy VOO (Vanguard 500 ETF) which has a 0.04% expense ratio if I plan on future purchases of the S and P index? This is the same expense ratio as Vanguard Admiralty 500 index shares.

I am not sure how these expense ratios affect anything when trading through a brokerage verses people who deal with index mutual funds? I am already out the $4.95 trading fee. Is this all, in effect, a cumulative drag on the cost basis by the fee (0.02%) PLUS the expense ratio of 0.09% for a total of 0.10%?

The $4.95 is a one time cost and does not carry over. When I buy an ETF I can easily account for $4.95 just through normal price fluctuations as it trades through the day. Even can account for the other 0.09% which is only $21.38 of the cost of above shares.

Mutual funds only trade at end of day price and so that is less control.

I can imagine how an expense ratio drags on a mutual fund, but am not sure how that applies with an ETF. I have no "expense ratio" on any individual stocks.
Date: Jun 19, 2017   


Last videos:

Chinese real estate investment
Chinese real estate investment
Chinese real estate investment
Chinese real estate investment
How To Get Followers On Facebook Instagram Yoytube Twitter Free For Busines
How To Get Followers On Facebook Instagram Yoytube Twitter Free For Busines
The art of adjustment
The art of adjustment
Ameriprise Mistake-Need Advice on Vanguard Allocations and Planning
Ameriprise Mistake-Need Advice on Vanguard Allocations and Planning
2017 Economic Prediction/Discussion
2017 Economic Prediction/Discussion
10 Things You Didn't Know About Everyday Objects
10 Things You Didn't Know About Everyday Objects
One stop shop for FREE fundamental analysis links
One stop shop for FREE fundamental analysis links

Cars ·
Travel ·
Pets ·
production-frontend