Many low fee funds charge exactly 0.1% annually for the magement fee. They are frequently designed to be &#x27;no load&#x27; funds, which, under regulatory requirements, may charge a maximum management fee of 0.25% per year. Additionally, they are prohibited from charging the load fees you described (entry&#x2F;exit) if they are marketed as &#x27;no load&#x27;. Investors benefit substantially from the availability of these funds, and charging 10 basis points (0.1%) per transaction makes them untenable.<p>You should also consider that rebalancing happens more frequently than when shares are created or redeemed. Suppose a fund has a mandate to track the S&amp;P 500. If a symbol is replaced by another in the index, the fund will need to alter its holdings, incurring transaction fees.