How is an ETF fee calculated in a trade that ends in less than a year?

External question — Personal Finance Stack Exchange Author: Lowbrow Original post: https://money.stackexchange.com/questions/155661 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. If you sell an ETF before a year, intraday or in a swing trade, then is the fee prorated or is that just the flat rate you pay when you sell, when you buy or does the broker pay it at some point in time? Is the fee a percentage of the initial amount of capital traded plus gains or losses?

External answer — Personal Finance Stack Exchange Author: jesse_b Original post: https://money.stackexchange.com/a/155665 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The fund expenses are taken directly from the fund on a regular basis (varies from fund to fund), often monthly. They are also usually reflected in real time. For example say you have a fund with a total of $1 billion in assets and a 0.1% expense ratio. That is $1 million per year so: The fund net assets would be reported as 999,000,000 The fund management would remove $83,333 from the fund monthly (or the appropriate number on their designated schedule)