An expense ratio is a fee (in the form of a percentage of one's investment) that an investor pays annually for access to an ETF or mutual fund.

What Does Higher Costs Mean? Generally, the lower the AUM of the fund, the higher will be the expense ratio. However, going only by the expense ratio is like comparing the costs of different ...

Expense ratios are deducted from returns, which means there’s a long-term drag on compounding. A 0.15% expense rate may not sound expensive, but that’s $15 out of every $10,000 gone yearly.

What does the total expense ratio mean in mutual funds and why does it vary? SEBI's Total Expense Ratio (TER) regulates operating expenses for mutual funds. A lower TER can increase long-term returns.

A mutual fund house incurs several costs to run a scheme. These are encapsulated into what is known as an expense ratio.

Typically, any expense ratio higher than one percent is high and should be avoided. Over an investing career, a low expense ratio could easily save you tens of thousands of dollars, if not more.

Exchange-traded funds (ETFs) and mutual funds both come with ongoing costs, but not all investors will understand exactly how these costs are calculated. A fund's expense ratio is simply the ...

For example, a 1% expense ratio means that you'll pay $10 per year in investment fees for every $1,000 in fund assets you have.

The gross expense ratio is the percentage of an investment that goes toward fees before discounts have been applied.