Is a 0.20 expense ratio good?

A reasonable expense ratio for an actively managed portfolio ranges from 0.5% to 0 or 75%, while an expense ratio greater than 1.5% is normally considered high today. For passive or index funds, the typical ratio is approximately 0.2%, but may be as low as 0.02% or less in some cases. Some funds may charge extremely low spending rates, but they add initial and secondary burdens. Or they can offer an introductory or short-term spending ratio that will increase later on.

Or they could reduce the costs of one fund but increase the costs of others to offset them. When comparing investments, keep in mind that there is no one-size-fits-all approach to mutual funds and ETFs, and expense ratios are just one component of an investment. Many online brokerages also have fund comparison engines that allow you to enter several fund indicators and compare your spending ratios and performance side by side. It's a good idea to delve into the details and understand how expenses are calculated and what is used for the fund you're interested in.

What is clear is that investors are not required to pay high fees to invest in ETFs, and should prioritize investing only in those ETFs with competitive and stable spending ratios.