WHAT YOU SHOULD KNOW
Layered fees can add up.
An account with management fees usually has two primary types of fees: the annual management fee charged for the management of the portfolio and the fees associated with the underlying investments in the portfolio. The annual management fee (usually based on a percentage of assets) varies by firm and the level of assets in your portfolio. The other costs are usually tied to the operating expenses of individual funds in the portfolio and commissions or transaction fees charged to buy and sell the underlying investments.
What is the general range for these fees?
For accounts with $300,000 in assets, the range within the industry is typically 0.75% to 2.00% for the annual management fee alone, plus any fees associated with the underlying investments.
Source: Cerulli Quantitative Update—Advisor Metrics 2011.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).