The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: brute on April 05, 2019, 07:18:26 AM

Title: How does the cost of an ETF change
Post by: brute on April 05, 2019, 07:18:26 AM

So, looking in Mint today, I see that the cost of a vanguard ETF i have went down. What does that mean? I'm sure its obvious, but I haven't been able to find a satisfactory answer.

Title: Re: How does the cost of an ETF change
Post by: MustacheAndaHalf on April 05, 2019, 09:44:25 AM

ETFs have some fixed costs.  As the assets of the ETF ("AUM") grow, the fixed costs become a smaller percentage of the fund's assets.  There's also some other economies of scale that allow an ETF to lower expense ratios as they grow larger.