I. Fund management fee and valuation
The management fee of ETF fund is usually a certain proportion of the fund's net assets. This means that the management fee is calculated according to the value of each ETF fund share. Under normal circumstances, the daily fund net value estimation will include management fees. Therefore, the amount of ETF fund management fees will directly affect the estimation of fund net value. This also explains why the management fees of ETF funds are different from other investment products. For example, the commission and transaction fee in stock investment are usually calculated according to the amount of each transaction.
Second, the collection method of fund management fees
Fund management fees are generally not charged to investors separately, because these fees will be accrued from the fund assets, accrued daily and paid monthly. The fund assets or net value seen by ordinary investors are the assets and net value after deducting management fees.
Third, the types of management fees and ETF funds.
Different types of ETF funds have different values and structures of management fees and other expenses. For example, the management fees of passive ETF funds and active ETF funds are different. Passive ETF funds are usually cheaper than active ETF funds, because the portfolio of passive ETF funds passively tracks the designated index, while the management cost of active ETF funds is usually higher, because its investment strategy requires more research and analysis by researchers and fund managers.
Fourthly, the influence of ETF fund management fees.
ETF fund management fee is a very important fee for investors, which will directly affect the investor's rate of return. When the management fee of ETF fund is high, the return rate of investors will decrease. Therefore, investors should pay attention to the size of fund management fees when choosing ETF funds. In addition, investors should also know other expenses of ETF funds, including transaction fees and custody fees, so as to understand the overall situation of the fund and better grasp the investment situation of the fund.
To sum up, ETF fund management fee is a very important expense, which directly affects investors' return on investment. Investors should carefully understand the management fees of ETF funds in order to make more informed decisions when choosing ETF funds. When choosing a fund, we should not only consider the size of management fees, but also understand other expenses and investment strategies of ETF funds.