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That works out to roughly 297 per 10,000 invested, every year you hold the fund.
The expense ratio is the percent of fund assets the manager keeps each year to run the business — paying portfolio managers, administrators, custody banks, marketing, and the index-licensing fee where applicable. You never see a bill for it. The fee is deducted in tiny daily slices from the fund's net asset value (NAV), so the price you see quoted is always net of fees.
Two reasons it matters more than most readers expect: (1) it's one of the only investment costs you can completely control — pick a cheaper fund and you keep the spread; and (2) it compounds against your returns. On a 30-year hold at a 7% gross return, a 1.0% expense ratio quietly erodes roughly 25% of what your final balance would otherwise be. The Fee Compounding Forecast card below models this for your fund and lets you compare against cheaper alternatives.
Charged proportionally throughout the year — built into NAV, never billed separately. Calculator uses a constant balance and ignores price movement; the Fee Compounding Forecast card below models the real compounding drag over multi-year holds. Not investment advice.
Is ETHU's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
How much will ETHU's expense ratio cost you over 30 years?
Pro projects the dollar fee drag, the tax cost on distributions (for options-income funds), and shows what you'd save by switching to a cheaper peer.
Peers are matched on sector + industry + strategy type, with one fund per issuer for diversity. Cheaper price doesn't automatically mean better — verify the fund holds what you actually want before switching.