Some exchange-traded fund (ETF) news alerts catch my attention, and some don’t. There’s a third type that hits my email inbox from time to time. I’d classify it as important, but only because it brings an opportunity to point out a common investor misperception.
In this case, it is one of the most common questions I get about ETFs from investors. For traders, it is not very relevant. It concerns those who, in an effort to be cost-conscious, overestimate the significance of an ETF’s expense ratio.
