Do ETFs have expense ratios?

Nearly all ETFs have an expense ratio that covers management and operating costs. You usually won't see it as a line-item charge; instead, it's deducted from the fund's assets over time and shows up as slightly lower returns.

Your total cost can also include trading spreads and any brokerage commissions. For liquid ETFs, spreads can be tiny; for niche ETFs, spreads can be a meaningful hidden cost.

When comparing ETFs that look similar, don't focus only on the expense ratio. Tracking difference and liquidity can matter just as much, because they affect what you actually earn after costs.