What are Derivatives?
Call and Put Options
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What is an ETF expense ratio and why is it important?
The expense ratio is the rate you are charged for investing in an ETF. Even passively managed index funds have expense ratios. Understanding how an expense ratio works is very important to maximizing returns when you invest.
How is the expense ratio calculated?
Money invested * expense ratio.
1000 * .06% = $6
The expense ratio is charged annually based off of how much you have invested in the fund