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What is a total expense ratio for ETFs?

The total expense ratio is a measure of the total annual operating expenses of an ETF. It is expressed as a percentage of the ETFs assets and is deducted from the ETFs returns. Operating expenses may include administrative, legal fees and other costs associated with managing the ETF.

It is important to consider the total expense ratio when choosing an ETF, as it can have an impact on the performance over time. An ETF with a higher expense ratio will be more expensive to hold. Furthermore, annual operating expenses added up may consume a great portion of the fund's returns - as such a higher total expense ratio will then result in lower comparative returns for the ETF.

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