Welcome to the Investing for Beginners podcast. In today’s show, we discuss:

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How expense fees and dividend yields work for ETFS, and whether they change over time.
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An example of a set it and forget it type investment portfolio using ETFs
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How to examine financials for irregularities or any other changes from the past to present using CTRL-F function.


For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com

Today’s show is sponsored by:

Masterworks.io/IFB

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Transcript

[00:00:00] Dave: All right, folks. Welcome to Investing for Beginners podcast. Tonight, we have episode 208, and we will discuss a great list of questions we got recently. And so, without any further ado, I will go ahead and read our first question.

So I have hi, Andrew. I’ve been listening to your podcast each week since I began investing in January; I’ve learned so much from your podcast. I have a few questions about ETFs that I’m hoping you could answer here or on an upcoming episode, does the expense ratio of an ETF ever change, or is it locked in for each share I buy? Similarly, does the dividend yield of an ETF ever change? Thank you, Joseph. Andrew, what are your thoughts on Joseph’s question?

[00:00:43] Andrew: So let’s start in case some of these are beginning just to tune in an ETF is an extreme exchange-traded fund, easy for me to say easy. And it’s a group of stocks bought into a single fund, and you can buy one share of it.

It gives you ownership of those stocks. The most common ones you’ll see are as a market index ETF. Let’s you buy the entire stock market in the basket. So when you buy an ETF, you have to pay an expense fee. So if you are, let’s say you bought an ETF that bought the whole stock market. So that fund would give you whatever those stocks values are, but they take some of it for themselves.

Cause it costs money. For them to deal with paperwork, to deal with the regulation and all of the administrative costs that go with collecting a bunch of people’s money and using that to buy stocks in a group, in a vehicle called an ETF that all costs money. So there’s an expense ratio for that. Does that change, or is that locked in, you have a long-term trend of exchange to answer Joseph’s question?

Sorry, expense ratios have trended lower over the years. And so an example would be like target-date funds. Those have been able to lower their fees over the years because they’ve been able to use economies of scale. As they’ve gotten bigger,