Do you have any expenses when you sell etf (other than online broker fees) ...if so how much are they?

Question

I was browsing through ishare prospectus and it said
Return Before Taxes 30.86%
Return After Taxes on Distributions 29.90%
Return After Taxes on Distributions and Sale of Fund Shares2 20.63% ...
so I was wondering if the fees are different if you buy directly from ishare...or are they additional fees (other than the fees you spend for selling it through your online broker

I meant why is the Return After Taxes on Distributions and Sale of Fund Shares so much lower than the return after taxes on distributions....that would mean that the sale of fund shares is a signicant portion...is it any higher than 7$ for scottrade or 15.95 for sharebuilder..etc

Answer 1

Technically I don't think you can "buy" directly from iShares unless you get a block of the creation units, again, highly unlikely. If there is a brokerage function available in conjunction with iShares website, it is a subsidiary/affiliate. You gotta buy them thru your brokerage account.

The expenses shown above are calculations mandated by the SEC showing what your returns would actually be AFTER the IRS takes its whack, at the top bracket, if you have zero ways of reducing that bracket. The numbers are there for worst case illustration purposes only; your returns will almost certainly be different, and higher than their after tax numbers.

Answer 2

The tax issue is the same with any brokerage or investor for that matter. You cannot avoid taxes as an investor, and your tax rate doesn't differ between brokerages. Besides, you only have to worry about taxes if you make money. Worry about making money first at the least possible cost.

The brokerage fee is the same, regardless if you buy or sell. You have a fee going in, and the same fee again going out. Every trade is accompanied by a brokerage commission.

You will earn a dividend if you own an ETF, and you will pay the dividend if you are short the ETF. But again, these payments or costs would be the same at all brokerages.

There may be othe exchange fees, but these are negligible, or a fee for real time quotes and other add-ons, but you should be able to ascertain any additional add-on fees before you sign on.

The only "fee" for trading is the brokerage commission.

Answer 3

The short answer to your question is NO... there are no other expenses when you sell other than your brokerage commission.