How is expense ratio of funds paid? And what about the accumulative dividend?

As described in the link provided by Frankie (How Are ETF Fees Deducted?), expense ratio of ETFs are subtraced from its NAV. However, the price you bought and sold is subjected to supply and demand in the market, and can be undervalued or overvalued with respect to the NAV at the point of purchase and sales.

To you as an ETF investor, your return is based on your buy and sell prices, and subject to the trading cost (brokerage fees, regulatory fees, etc.). As ETF price will move around its NAV, the effect of expense ratio on returns is felt in the long term.

Similarly, accumulating ETF will keep the dividends received and the dividends amount is reflected in its NAV. Here is an explanation on how this works:

How do accumulating ETFs actually work?

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