Quote:
Originally Posted by Hal :-)
Why do you say there are layers of internal fees. I know there are funds of funds that have fees like that. But I always think of ETFs as indexes. What am I missing?
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Nothing!
An ETF replicates an index. Therefore it purchases stocks and other instruments that make up the index. Therefore the fees/costs that they incur are minimal ie the buying and selling of stocks. They recoup thier costs and charge a feed to replicate an index. They are not managing what stocks to buy because they are following the index. Very cool and provides a very good service. I presume if you have a Vanguard account the cost to buy the ETF should be free. Is that true?