Question on trading ETFs and fees

[DanP]

Hi, I should know the answer but for some reason find this confusing.

When short-term trading ETF's (average hold 10 days) do the ETF fees get prorated when the position is closed, or how does that work?

Thanks in advance!

 

[bingybear]

ETF fees are taken by small amounts daily. This makes small changes in the NAV. So they don't track how long you have owned it. Now trading may cost you more or less based on the brokerage you use. Some that offer free trades may charge you for the quick turns.

 

[DanP]

Ah, so the expense is baked into the price continually? That would make sense.

Been trading stocks for years so aware of fees, Interactive Brokers works great for me. But new to trading ETFs and couldn't figure out the expense aspect.

Thanks!

 

[bingybear]

google is great for finding this kind of info