The expense ratio is the ratio of an investment fund’s operating expenses to itsassets. It is also sometimes known as the management expense ratio (MER), theoperating expenseratio (OER) or the before reimbursements expense ratio (BRER). The expense ratio is one way to determine if a fund...
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.
The expense ratio isn't the only number that indicates your total costs of having a fund instead of individual stocks. Investors must also consider how much money they put into the fund. The more capital you invest in an ETF or mutual fund, the more you'll pay. Impact of a High Expen...
An expense ratio is a measure of the total fees and costs associated with buying investment funds. Every single person who buys into the fund pays that fund’s expense ratio. Whatever the percentage is, it represents the amount of your investment that goes toward the operations and management ...
The gross expense ratio is the percentage of an investment that goes toward fees before discounts have been applied.
A "good" expense ratio will be determined by a variety of factors, such as if the fund is actively managed or passively managed. Generally, for an actively managed fund, good expense ratios range between 0.5% and 0.75%. Anything above 1.5% is considered high. ...
An example of this type of strategy is high-frequency trading. Pros and Cons Of Hedge Funds The pros and cons are important to consider when asking what a hedge fund is. As discussed above, most people do not qualify to invest in a hedge fund. But for those that do, the below ...
While they are commonly referred to as fees, mutual funds charge investors what is called an "expense ratio" as payment for managing the fund. However, understandingmutual fundexpense ratioscan be confusing. There are a variety of factors that contribute to a fund's total expense ratio. It se...
For example, the Fidelity® 500 Index Fund has a gross expense ratio—the percentage of your overall investment that goes to the fund manager—of 0.015% as of April 29, 2024. Remember the expense ratio is the total annual fund operating expense ratio from the fund's most recent prospectus...
An ETF is a tradeable fund, containing many investments, generally organized around a strategy, theme, or exposure. That approach could be tracking a sector of the stock market, like technology or energy; investing in a specific type of bond, like high-yield or municipal; or tracking a mark...