Author Topic: How does the cost of an ETF change  (Read 488 times)

brute

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How does the cost of an ETF change
« 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.

MustacheAndaHalf

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Re: How does the cost of an ETF change
« Reply #1 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.