Expense Ratio
An expense ratio is a fund's annual operating expenses expressed as a percentage of its average net assets.
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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An expense ratio is a fund's annual operating expenses expressed as a percentage of its average net assets.