™A 0.50% annual expense ratio corresponds roughly to $50 on a constant $10,000 holding for one year; actual deductions and average assets differ.
ETFs & Funds
Expense ratio
A fund’s annual operating expenses expressed as a percentage of average net assets.
Plain-English context
Put the definition to work.
The ratio is not your complete cost: spreads, commissions, taxes and tracking differences require separate consideration.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — ETF bulletin