Distribution Fees
Distribution fees are paid out of fund assets to cover the marketing and selling of fund shares, such as compensating brokers and others who sell fund shares. These fees also pay for advertising, printing and mailing prospectuses to new investors, and for printing and mailing sales literature to prospective investors. Typically, distribution fees apply to mutual funds but not to ETFs. Distribution fees sometimes are referred to as 12b-1 fees.
Concept at a glance
Definition and explanation
Distribution fees are paid out of fund assets to cover the marketing and selling of fund shares, such as compensating brokers and others who sell fund shares. These fees also pay for advertising, printing and mailing prospectuses to new investors, and for printing and mailing sales literature to prospective investors. Typically, distribution fees apply to mutual funds but not to ETFs. Distribution fees sometimes are referred to as 12b-1 fees. [1]
Source-supported connections
Frequently asked questions
What does Distribution Fees mean in the cited reference?
Distribution fees are paid out of fund assets to cover the marketing and selling of fund shares, such as compensating brokers and others who sell fund shares. These fees also pay for advertising, printing and mailing prospectuses to new investors, and for printing and mailing sales literature to prospective investors. Typically, distribution fees apply to mutual funds but not to ETFs. Distribution fees sometimes are referred to as 12b-1 fees. [1]
Distribution Fees connection map
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Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.