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...
The expense ratio for mutual funds is typically higher than the expense ratios for ETFs. This is because most ETFs arepassively managed. The assets held in them are selected to mirror an index such as the S&P 500, and changes to the selections rarely need to be made. A mutual fund, on ...
The expense ratio of a mutual fund is the percentage of your investment that goes toward fees. It can be found in the fund’sprospectus. The expense ratio is one of the key details about a mutual fund that you can find on most websites and brokerage platforms where you’d purchase one....
When it comes to investing in mutual funds or exchange-traded funds (ETFs), one of the most important factors to consider and understand is the expense ratio. An expense ratio measures how much you’ll pay over the course of a year to own a fund. A high expense ratio can significantly ...
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 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...
The company packaging that ice cream ETF for you has to make money somehow. This is the expense ratio and it is expressed as a percentage of the money you invest in the ETF. For example, a 0.5% expense ratio means 0.5% of your money will go toward covering the fund’s operating ...
An expense ratio is a cost of owning an exchange-traded fund (ETF). This is similar to a management fee. Here is what types of expenses might be included.
Expense ratios reflect what it costs to operate mutual funds and ETFs. Learn more about what an expense ratio is.
What is private mortgage insurance (PMI)? Private mortgage insurance (PMI) is an extra expense forconventional mortgageborrowers who put less than 20 percent down for a home. Although the borrower pays for it, PMI actually protects the lender, compensating for the extra risk the lender assumes ...