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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.


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