Expense Ratio

Tag: Expense Ratio

Expense Ratio is one of the most important metrics to consider when investing in mutual funds. It is an annual fee that mutual fund companies charge, expressed as a percentage of the fund’s assets. By monitoring the expense ratio, investors can compare funds with similar investment objectives and decide which one offers the best value for their money. Investing in funds with a low expense ratio can save investors a significant amount of money in the long run. Knowing your fund’s expense ratio and comparing it to other options can help you make educated decisions about your investments.

Ratio

ETF Expense Ratio Explained: Understand Trading Costs

by Nicole KnightSeptember 3, 2023

ETF (Exchange-Traded Fund) expense ratios are fees associated with owning or trading an ETF, usually expressed as a percentage of the total market value of the ETF. ETF expense ratios are expressed as an annual percentage of assets in the fund, and they can vary depending on the size and type of ETF. Generally, larger and more actively traded ETFs have higher expense ratios than smaller, less actively traded ETFs. Expense ratios help to explain the cost of investing in an ETF, and are an important factor to consider when evaluating the potential return and risk associated with a particular ETF.