| Description of costs and assumptions | Long-term, buy-and-hold investor | Active investor |
|---|---|---|
| Average trades per year ($10,000 per trade) | 2 (1 roundtrip) | 60 (30 roundtrips) |
| Commissions | $0 | $0 |
| Bid/ask spreads (0.15% average per roundtrip) | $15 | $450 |
| Operating expenses (0.18% per year on $10,000 balance) | $18 (ETF held every day in the year) | $9 (ETF held for half of the days in the year) |
| Changes in discounts/premiums | $0 | $0 |
| Total | $33 | $459 |
Disclosure Title
Source
Disclosure
Schwab Center for Financial Research. This example is hypothetical and provided for illustrative purposes only.