Illustrative stock photo: Pexels · Free-use licence Legally Insightful · Australian explainer Quick answer: ETF costs may include an ongoing management fee, brokerage when trading, a buy–sell spread and other fund-level expenses. A fund advertised as low cost can still be expensive to trade frequently or hold for a very short period. Ongoing fees reduce the fund’s return The management fee or stated management-cost ratio is typically expressed as a percentage of assets per year. It is usually reflected in the fund’s value rather than invoiced separately to each investor. Read the current product disclosure statement to see which expenses are included and whether additional transactional or operational costs apply. Fees may change, and products use different disclosure categories. Trading costs matter at entry and exit Your broker may charge a fixed or percentage brokerage fee. There may also be a difference between the best current buying and selling prices, known as the bid–a...