An expense ratio is the annual fee a mutual fund or ETF charges investors to cover operating costs. It’s expressed as a percentage of assets under management and impacts overall investment returns by reducing the fund’s net gains.
The ratio of an expense is the yearly fee that a fund has to pay investors to operate assets as a percentage of total investment. It includes management, administrative, as well as operational expenses. A lower ratio of expense implies that you can keep more of your money invested, and a higher ratio may actually hike the total returns in the long run.
An expense ratio is the fee that a mutual fund or ETF levies annually on investors for managing the fund. It's a percentage of your investment and includes fees for management, administration, and operations.
Expense ratio is a percentage that mutual funds or ETFs charge to cover their management and operating costs. Higher expense ratio means lower returns, so investors always prefer a low expense ratio.
