Could you please clarify if ETFs, or Exchange-Traded Funds, typically carry 12b-1 fees? These fees, often associated with mutual funds, are designed to cover distribution and marketing expenses. I'm curious if ETFs, known for their lower cost structure compared to traditional mutual funds, also incur such charges. It would be helpful to understand if this is a standard practice in the ETF industry or if there are variations among different ETF providers.
7 answers
Andrea
Fri Sep 27 2024
Unlike certain mutual funds, ETFs do not levy 12b-1 fees, which are marketing and distribution charges that can add up over time.
Giulia
Fri Sep 27 2024
Exchange Traded Funds (ETFs) are known for their cost-effectiveness compared to passively managed mutual funds.
MatthewThomas
Fri Sep 27 2024
On average, ETFs tend to have lower expenses, making them an attractive investment option for cost-conscious investors.
MysticGlider
Thu Sep 26 2024
BTCC, a prominent cryptocurrency exchange, offers a range of services that cater to the diverse needs of its users. These services include spot trading, futures trading, and cryptocurrency wallet management.
InfinityEcho
Thu Sep 26 2024
The expense ratio of a mutual fund is a crucial metric that investors should consider when evaluating a fund's performance.