Betashares Capital Limited (ABN 78 139 566 868 AFSL 341181) (Betashares) is the responsible entity and issuer of the Betashares Funds, as well as Betashares Invest, the IDPS-like scheme available through Betashares Direct.
Before making an investment decision, read the relevant Product Disclosure Statement, available from this website (www.betashares.com.au) or by calling 1300 487 577, and consider whether the product is right for you. You may also wish to consider the relevant Target Market Determination, which sets out the class of consumers that comprise the target market for the Betashares Fund and is available at www.betashares.com.au/target-market-determinations. The Product Disclosure Statement and Target Market Determination for Betashares Invest are available at https://www.betashares.com.au/direct, or by emailing Customer Support at support@betashares.com.au. You should also consider the applicable disclosure document for any underlying investment available through Betashares Invest before making an investment decision.
This information is general in nature and doesn’t take into account any person’s financial objectives, situation or needs. You should consider its appropriateness taking into account such factors and seek professional financial advice.
Investments in Betashares Funds are subject to investment risk and the value of units may go up and down. The performance of any Betashares Fund is not guaranteed by Betashares or any other person.
Past performance is not indicative of future performance.
FAQs
ETF fees are accrued daily, which means they are reflected in the daily price of an ETF; however, the fees are typically deducted from fund assets on a monthly basis. From the investor's perspective, ETF fees are not directly paid like a monthly bill. Instead, they are reflected in a fund's net return.
How do ETF expense fees work? ›
ETF fees pay for the expenses of managing an exchange-traded fund. They include custodial costs, management salaries, and the costs of buying and selling securities. These are typically lower than the expenses for actively managed funds but they can be significant if you trade often or if the fund does poorly.
How does ETF pricing work? ›
The price of an ETF may deviate from the NAV of the ETF due to changes in the supply or demand for an ETF at any single point in time. The market price will typically exceed the NAV if the fund is in high demand with low supply. The NAV will generally be higher if the fund has a high supply with little demand.
What is a reasonable management fee for ETF? ›
How to find the best ETF expense ratio. High fees can turn any investment into a poor one. A good rule of thumb is to not invest in any fund with an expense ratio higher than 1% since many ETFs have expense ratios that are much lower.
How are ETF fees paid on Reddit? ›
ETF management fees are dragged out of the assets of the fund. It's not charged to you directly. It just means the fund seems to slightly underperform compared to its underlying index. If you want to ballpark this figure, it's one-twelfth the published MER, times your holdings at the end of the month, monthly.
Where are ETF fees taken from? ›
An ETF's annual fee is the most obvious holding cost for an ETF investor. It's taken as a percentage of an investor's stake in an ETF. An investor with a $10,000 stake in an ETF charging 1% would pay $100 in fees paid per year.
How to know if ETF is overpriced? ›
To determine if an ETF is overvalued, an investor can analyze the historical trend of the ETF's price and volume. If the price has risen rapidly in a short period and the volume is decreasing, it could indicate that the ETF is overvalued.
How is ETF cost calculated? ›
ETFs typically have an expense ratio of 0.05%. An investor can determine the expense ratio by dividing the annual expenses of the investment by the fund's total value, though the expense ratio is also typically found on the fund's website.
Does Vanguard charge fees for ETFs? ›
You won't pay a commission to buy or sell Vanguard mutual funds and ETFs online in your Vanguard account. A few Vanguard mutual funds charge fees designed to help cover high transaction costs and discourage short-term trading.
How do I know if ETF is trading at premium or discount? ›
In short, if the price of the ETF is trading above its NAV, the ETF is said to be trading at a “premium.” Conversely, if the price of the ETF is trading below its NAV, the ETF is said to be trading at a “discount.” In relatively calm markets, ETF prices and NAV generally stay close.
The administrative costs of managing ETFs are commonly lower than those for mutual funds. ETFs keep their administrative and operational expenses down through market-based trading. Because ETFs are bought and sold on the open market, the sale of shares from one investor to another does not affect the fund.
What is an acceptable management fee? ›
Management fees, whether paid as a mutual fund expense ratio or a fee paid to a financial advisor, typically range from 0.01% to over 2%. Generally, the range in fee amount is due to management strategy.
How do ETF management fees work? ›
ETFs and mutual funds charge fees to cover ongoing operating expenses, such as advisory services, administration and recordkeeping, among other things. These fees are expressed as a percentage of fund assets and are commonly known as the management expense ratio (MER). ETFs tend to have lower MERs than mutual funds.
What is the average fee for ETF funds? ›
Factoring in 0.5% to 0.75% for actively managed fees is considered to be around the average. Another type of fee that investors may encounter when buying or selling ETF shares is trading commissions. These fees are charged by brokers and can vary depending on the specific broker and ETF.
Do ETFs have hidden fees? ›
ETFs have transparent and hidden fees as well—there are simply fewer of them, and they cost less. Mutual funds charge their shareholders for everything that goes on inside the fund, such as transaction fees, distribution charges, and transfer-agent costs.
Is the expense ratio charged every year? ›
It is important to note that while the expense ratio is an annual fee, it is not charged once every year. Instead, it is subtly deducted daily from the fund's net asset value (NAV) . Since the expense ratio is an intrinsic expense, which is automatically deducted from the NAV, you don't get any receipt on it.
Is 0.35 expense ratio good? ›
A good expense ratio, from the investor's viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high.
What is 0.25 expense ratio? ›
Imagine, for example, that a fund carries an expense ratio of 0.25. That means that for every dollar you invest into the fund, you will pay 0.25 percent in fees each year. In other words, for every $10,000 you invest in the fund, you'll be on the hook for $25 worth of fees.
