Understand HSA Investment Fees
Learn how Hammock’s investment fee and ETF expense ratios work.
HSA investments can have two types of ongoing costs: Hammock’s investment fee and, for ETFs, the fund’s expense ratio.
Investment costs at a glance
Hammock charges an investment fee of 0.03% each month (about 0.36% per year) on invested HSA assets. Cash kept in your HSA is not included.
Example: For a stable invested balance, that is about $0.30 per month—or $3.60 per year—on $1,000, and $3.00 per month—or $36 per year—on $10,000. If your invested balance changes, the fee changes too.
ETFs have their own expense ratios. An expense ratio is the fund’s annual operating cost, expressed as a percentage of your investment. It is separate from Hammock’s investment fee.
Example: An expense ratio of 0.07% works out to about $0.70 annually for every $1,000 kept in that ETF, assuming the balance stays around $1,000. Fund operating costs are paid from the fund’s assets, so they are reflected in the fund’s daily value rather than appearing as a separate charge in your account.
Find a fund’s expense ratio
Search the fund’s ticker on Morningstar or the fund company’s website. For the most current source, use the fund company’s page or prospectus and look for Expense ratio or Total Annual Fund Operating Expenses.
Before you invest
Review the current Hammock investment fee and the current fund documents for any ETF you are considering. Fees are only one part of an investment decision, and investment values can go down as well as up.