Expense Ratio
Expense ratio is the annual fund operating cost expressed as a percentage of assets, reducing investor returns.
Expense ratio, gross expense ratio, net expense ratio, MER, and TER comparison terms.
Expense Ratio Measures and Comparisons terms explain the explicit and embedded costs investors may pay through fund expense ratios, management fees, sales loads, redemption fees, and share classes.
Use this branch when costs or share-class design can change net return, distribution economics, adviser compensation, or the suitability of a fund wrapper.
| Term | Use it for |
|---|---|
| Expense Ratio | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
| Expense Ratio vs. MER | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
| Expense Ratio vs. TER | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
| Gross Expense Ratio | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
| Net Expense Ratio | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
| Total Expense Ratio (TER) | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
Check the prospectus or offering document, expense ratio, fee waiver, sales charge, redemption fee, 12b-1 or distribution fee, adviser compensation, and share-class eligibility.
This page is educational and does not recommend a specific fund, security, tax treatment, or account choice.
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Expense ratio is the annual fund operating cost expressed as a percentage of assets, reducing investor returns.
Expense ratio and management expense ratio compare fund cost measures, but they can differ by jurisdiction, fee scope, and reporting convention.
Expense ratio and total expense ratio are fund-cost measures that show how operating expenses reduce investor returns.
Gross expense ratio measures a fund's operating expenses before fee waivers, reimbursements, or temporary cost reductions.
Net expense ratio is the fund expense measure investors pay after fee waivers, reimbursements, or other expense reductions.
Total expense ratio shows a fund's recurring operating costs as a percentage of assets, helping investors compare fee drag across funds.