For instance, the SPDR S&P 500 ETF Trust (ticker: SPY) is the largest ETF in the world. The vast amount of assets in the fund exceeds expenses by a wide margin, resulting in a low 0.09% expense ratio. Actively managed funds tend to have higher expense ratios than passively managed ...
For example, passively-managed funds (often known as index trackers) will almost inevitably have a low operating expense ratio. This is because the funds are largely managed by computer algorithms with very little human input. At the other end of the scale, there are investment funds with very...
Typically, any expense ratio higher than 1 percent is high and should be avoided. Over an investing career, a low expense ratio could easily save you tens of thousands of dollars, if not more. And that’sreal money for you and your retirement. However, it’s important to note that many...
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 higher the asset turnover ratio, the more efficient a company is. If a company has a low asset turnover ratio, it is not efficiently using its assets to create revenue. Key Takeaways Asset turnover is the ratio of a company's total sales or revenue to its average assets. The ra...
Why is it important to maintain a good debt-to-income ratio? There are a few reasons why it's important to maintain a good DTI ratio, including: You never know when you will need a loan: You never know when a surprise expense will pop up - and when one does, you may need a lo...
Expense ratios are charged as a percentage of your portfolio. You won’t receive a bill that says how much you owe, however. Instead, your expense ratios will simply be subtracted from your overall return. The fees are usually negligible, especially if the expense ratio is low. For example...
Types of liquidity ratiosWhat is a cash ratio?How to calculate your liquidity ratioWhat is a good liquidity ratio?Liquidity ratio: an exampleHow to improve your liquidity ratioHow BILL can impact your liquidity ratio Check out additional BILL resources Learn more Managing your debts demands a ...
Learn about what marketing ROI is, how to calculate it, and the challenges of accurately attributing sales and calculating marketing expenses.
In an ideal situation, you shouldn’t have any overdue accounts. So the closer your ADD is to zero, the better. A low ADD indicates that your business maintains a good cash flow. Average Days Delinquent = Days Sales Outstanding – Best Possible Days Outstanding ...