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DrStrangeLove

01 Sep 2021

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General Investing

Understanding ETF Expense Ratio and Management Fee

Hi All,

I'm trying to understand the fee that I'm being charged for a ETF. Lets take for example STI ETF, they have a expense ratio of 0.30% and management fee of 0.30%.

While I understand the expense ratio is the fee that we get charged, I'm not sure about the management fee. What is the different?

Does this mean yearly we get charged 0.60% or 0.30%?

Thank you in advance.

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Wake Up Your Dollar

02 Sep 2021

Hi DrStrangeLove, management fee forms part of the expense ratio. Management fee is the fee charged to manage and administer the portfolio. Expense ratio consists of management fee, as well as other charges such as custodian fee, audit fee etc.

In total you are charged the expense ratio. The fee is automatically deducted from the fund's NAV, hence there is nothing you need to pay extra out of your pocket. The price you see already has fees deducted from it.

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CCW

01 Sep 2021

Expense ratio is fees by the ETF. Mgmt fee is from the platform you are buying the ETF from I think.

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1M45

Edited 01 Sep 2021

Fee will deduct from the ETF NAV, the stock price will drop abit without you noticing, u no need to ...

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