Expense Ratio
The annual fee a fund charges, expressed as a percentage of the amount invested. Lower expense ratios leave more of the return with the investor — a key reason low-cost index funds are popular.
Appears in these guides
- Expense Ratios & Fund CostsETFs & Index Funds
- Bond ETFs: Income, Duration and Market PricesETFs & Index Funds
- CommissionsBrokers & Accounts
- ETFs vs Mutual FundsETFs & Index Funds
- IWM: Small-Cap Exposure and Index ReconstitutionETFs & Index Funds
- Leveraged ETFs: Daily Targets and Multi-Day CompoundingETFs & Index Funds
Related terms
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