SPDR® Nuveen S&P High Yield Muni Bd ETF
When it comes to climate change risks, investors should look beyond the obvious sectors like fossil fuel and utilities. The VW (VLKAY) scandal has only reaffirmed this.
The higher the expense ratio, the deeper the decline in an investment’s value. Also, the higher the period of investment, the greater the impact of expense ratios due to the compounding effect.
We note that net or effective returns (that is, returns after expenses) fall to 7.95% versus perceived returns of 8.44% for TLT for the past three years.
To see how expense ratios can affect investments over time, let’s compare the returns of several fixed income ETFs that differ only in expense ratio.
Other than the operating costs of an ETF, the other hidden cost that affects the return for investors is the bid-ask spread.
Owning an ETF comes with some fees. These fees are called “expense ratios” because they’re expressed as a percentage of a fund’s assets.