Expense Ratio
The annual fee a mutual fund or ETF charges, expressed as a percentage of your invested balance.
What does expense ratio mean?
Because it’s charged on your whole balance every year, even a small expense ratio compounds into a large drag over decades. Broad index funds often charge under 0.10%, while active funds can exceed 1%.
Put it to use
Mutual Fund Expense Calculator This calculator can help you analyze the costs associated with buying shares in a mutual fund. By entering a few pieces of information, found in your fund's prospectus, you can see the impact of fees and operating expenses on your investment. Compare Investment Fees Even a small difference in the fees you pay on your investments can add up over time. Use this calculator to see how different fees impact your investment strategy!
Related terms
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