Graphic of the Day – Calculating the Cost of an Exchange-Traded Fund

October 25, 2012

This is pretty cool (click on the graphic to see a larger version):

Calculating the True Cost of an ETFSource: WSJ

There is more to be considered when selecting an ETF than just the expense ratio. Spreads and brokerage commissions can take a large chunk out of the returns (if there are any).

One response to Graphic of the Day – Calculating the Cost of an Exchange-Traded Fund

  1. That $6.95 is a flat fee though — so the “percentages” change based on the investment amount. A relatively small investment of $10k (example used here) and those fees look larger than if you invested $100k.