The total expense ratio (TER) is a measure of the total costs associated with an ETF. These costs consist of management fees , legal fees, auditor fees, and other operational expenses from the ETF provider like iShares, Venguard etc.
The TER can vary and can be seen on the factsheet from the ETF provider.
So how do you pay these fees?
There is no additional invoice instead it is cut from the value of the ETF it self. For example if I buy an ETF costs 100 euro at a TER of 0,1% and there is no change in value of this ETF at the end of the year 10cents from the ETF will be cut and I will have an investment of 99euros 90cents remaining.
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*None of this is meant to be considered as investment advice, as I am not a financial expert and am only sharing my experience with stock investing. The article and video are accurate as of the posting date but may not be accurate in the future.