
Expense Ratio: Definition, Formula, Components, and Example - Investopedia
Oct 17, 2024 · An expense ratio measures how much you'll pay over the course of a year to own a fund—usually a mutual fund or an exchange-traded fund (ETF)—expressed as a percent of your investments.
Mutual fund & ETF expense ratios: What are they? - Vanguard
An expense ratio reflects how much a mutual fund or an ETF (exchange-traded fund) pays for portfolio management, administration, marketing, and distribution, among other expenses. You'll almost always see it expressed as a percentage of the fund's average net assets (instead of …
What Is An Expense Ratio? – Forbes Advisor
Jul 30, 2024 · An expense ratio is an annual fee charged to investors to cover the operating and administrative expenses of mutual funds and exchange-traded funds (ETFs).
What Is An Expense Ratio And What’s A Good One? - Bankrate
Oct 2, 2024 · An expense ratio measures how much you’ll pay over the course of a year to own a fund, and a high expense ratio can significantly impact your returns.
What Is an Expense Ratio? - The Motley Fool
Feb 16, 2025 · Expense ratio is the percent of your investment that a fund charges each year to manage your invested money. A fund's expense ratio equals the fund's total operating expenses divided by...
Expense Ratios: What Are They And Why Are They Important? - CNBC
Jul 30, 2023 · An expense ratio is essentially a fee that investors pay for the management of a fund — be it an index fund, mutual fund and/or ETF — which includes all administrative, marketing and management...
What Is an Expense Ratio? | Investing - U.S. News
Dec 19, 2023 · "An expense ratio is the percentage an investor will pay annually for management, administrative and other operating expenses of the fund," states Emily Cozad, portfolio manager and...
Expense Ratio - Definition, Components, Practical Example
The expense ratio is the annual maintenance expense (operating costs, management fee, allocation fee, advertising expenses) imposed by mutual funds to support its expenses. An expense ratio is the cost of owning a mutual or exchange-traded fund (ETF).
What is an expense ratio? | Investing Definitions - Morningstar
Jul 19, 2021 · What is an expense ratio? A fund's expense ratio expresses the percentage of fund assets deducted each fiscal year for fund costs, which include management fees, administrative...
Expense ratio explained: Why even a small difference matters
Expense ratios, which may look like a small percentage, directly influence the returns you earn from mutual funds and exchange-traded funds (ETFs). Knowing how expense ratios work helps you compare funds effectively based on cost and value.