k_ETF_assetClass

— The management fee encompasses all direct expenses incurred in “managing” the investments such as hiring the portfolio manager and investment team.

The cost of hiring managers is the largest component of management fees; it can be between 0.5 percent and 1 percent of the fund’s assets under management (AUM).

Passively managed funds (like index-tracking ETF) involves fewer decisions, less research, less skill, less manpower/expertise, so management fee is lower. Still the operating costs can be same as active management.

— expRatio: the total amount that an investment company charges investors to manage the fund. This include

• Notably, the cost of buying or selling any security for the fund (incl. MOETF) is not included in the management fee. Rather, these are transaction costs and are expressed as the trading expense ratio.
• profits for the fund company.
• Distribution fees, which are used to pay for the sales and marketing of a fund, including broker commissions, also are part of a fund’s expense ratio.
• Shareholder service fees cover the cost of customer service and the provision of official mutual fund documents
• custodial expenses, legal, auditing, transfer and administrative expenses
• facilities cost. Someone (investors) has to pay the security, cleaning, heating…

Unlike the management fee, expRatio can fluctuate year to year

— typical expense ratios:

• ARKK 0.75
• CSOP A50 ETF: 1.2%
• 0.5 – 0.75 is reasonable for active management
• 1.5 is high, even for a mufu
• 0.2 for passive ETF
• 0.4 for gold ETFs —  https://www.investopedia.com/articles/investing/031913/most-affordable-way-buy-gold-physical-gold-or-etfs.asp#low-cost-etfs-for-gold