What Is an ETF Expense Ratio, and How Does It Affect My Returns on Pluang?
An expense ratio is the yearly cost an ETF's issuer takes from the fund's assets, so it lowers the return of any US ETF you hold on Pluang without appearing as a separate charge. US Stocks and ETFs on Pluang are facilitated by PT PG Berjangka, a Financial Derivatives Trading Intermediary for derivative products with securities as the underlying asset, licensed and supervised by OJK. It is set by the issuer, not by Pluang, and it is separate from the fees Pluang charges when you buy or sell. Over many years, a small difference in expense ratio adds up.
Costs of holding a US ETF on Pluang
| Cost | Set by | When it applies | How you pay it |
|---|---|---|---|
| Expense ratio | The ETF issuer | Every day you hold the ETF | Built into the ETF's price |
| Transaction fee: 0.2% (Pluang Plus) or 0.3% (Regular), plus VAT | Pluang | Each buy and sell | Taken from the order |
| JFX & KBI fee: 0.05%, up to US$0.10 per transaction, plus VAT | JFX and KBI | Each buy and sell | Taken from the order |
| SEC, TAF and CAT fees | US regulators | Sales only | Taken from the sale proceeds |
| IDR–USD conversion fee: 0.25%, plus VAT on the fee | Pluang | Only when you convert | Taken from the conversion |
A simple example
If you hold US$1,000 in an ETF with an expense ratio of 0.10% a year, about US$1 a year comes out of the fund's assets, a little each day. A fund charging 0.75% would take about US$7.50 on the same amount. Because the cost is built into the price, your profit and loss on Pluang already reflects it.
Index funds usually have lower expense ratios than actively managed funds. Each ETF's current expense ratio is published by its issuer, on the fund's website and fact sheet.
Learn more: US Stocks fees on Pluang and what an ETF is.
Related questions:
Q: Is the expense ratio charged even when the ETF loses value?
Yes. It is a percentage of the fund's assets, taken every day whether the price goes up or down.
Q: Does Pluang add its own expense ratio?
No. The expense ratio belongs to the ETF issuer. Pluang's charges on a US ETF are the transaction-related fees listed on the US Stocks fee page.
Q: Is a lower expense ratio always better?
All else being equal, yes: more of the fund's return stays with you. But compare what the ETF holds and how closely it tracks its index too, not only its cost.
Q: Will I see the expense ratio as a deduction in my transaction history?
No. It is taken inside the fund and shows up only as a slightly lower ETF price, so there is no separate line in your history.
Last updated: 6 November 2026