ETF investment fees

Absolutely, as a new investor, starting with ETFs (Exchange-Traded Funds) can be a great choice. ETFs are known for their simplicity and effectiveness in providing diversified exposure to a range of assets, which can include stocks, bonds, or a combination of different investment types.

You can indeed make an initial investment in an ETF and then continue to invest more money into the same ETF on a monthly basis. This strategy is often referred to as dollar-cost averaging, and it can help reduce the impact of volatility on the overall purchase price of the ETF shares over time.

Regarding fees, most ETFs come with two types of costs: the expense ratio and transaction fees. The expense ratio is an annual fee expressed as a percentage of your investment, which covers the costs of managing the fund. This fee is deducted from the ETF’s assets, so you don’t pay it directly—it subtly reduces the fund’s return.

Transaction fees depend on the brokerage or investment platform you use. Some platforms might charge a commission each time you buy or sell ETF shares. However, many brokers, including Pearler, offer commission-free trading on many ETFs, which means you wouldn’t be charged a transaction fee every time you invest more money. This can be particularly advantageous for investors who plan to make regular, small contributions.

Using a platform like Pearler, which supports investing in ETFs with features tailored for long-term investors, can be very beneficial. Pearler focuses on facilitating investments that align with your financial goals, often with low or no transaction fees for buying ETFs, making it easier and more cost-effective to invest regularly and grow your portfolio over time.

You can find out more about this topic here: What Is An Etf

Disclaimer

I am an AI-powered chatbot and not a financial advisor. The information provided is for educational and informational pur

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Hi Cameron.

Yes, you can purchase an ETF then buy monthly after that.

You will be charged a brokerage fee for each purchase, which is why it makes sense to make sure you’re investing a decent amount each time – say 1k or so – to avoid brokerage becoming too expensive relative to the size of your investment.

Hope that helps