What Is a Good ETF Expense Ratio? What Is an Expense Ratio? What Is EBITDA and Why Does It Matter? Economic Profit: Definition and How to Calculate What Is Enterprise Value and Why Is It Important? What Is Earnings Per Share (EPS)?
The gross expense ratio is the percentage of an investment that goes toward fees before discounts have been applied.
Both ETFs and mutual funds have an "expense ratio," which is essentially the cost of being invested. For example, if you have an ETF with a 0.18% expense ratio on a $1,000 investment, you're paying $1.80 in fees a year. Because of an ETF's structure, their administrative costs tend...
Is accounts receivable an asset? Yes, accounts receivable is considered a current asset because it represents money owed to the business that is expected to be received in the near future. When a customer pays with a credit card, is that cash or accounts receivable?
Expense ratio. This is one of the main costs of an index fund. Expense ratios are fees that are subtracted from each fund shareholder’s returns as a percentage of their overall investment. Find the expense ratio in the mutual fund’s prospectus or when you look up a quote for a mutual...
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 ...
Why the total expense ratio (TER) can be misleading A fund’s TER is generally best viewed as a useful guideline rather than a hard-and-fast indicator of a fund’s overall value. For example, passively-managed funds (often known as index trackers) will almost inevitably have a low operat...
A number of factors determine whether an expense ratio is considered high or low. A good expense ratio, from the investor's viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high. The expense ratio for mutual funds is t...
each refers to different aspects of fund expenses. A management fee is charged by an investment manager for managing the fund's assets, while the MER, typically called the expense ratio, represents the total cost of managing and operating a fund and is given as a percentage of the fund's ...
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...