Fundamentals

Expense Ratio

The expense ratio is the annual fee charged by a fund to cover operating costs, expressed as a percentage of assets. A 0.10% expense ratio means you pay $10 annually for every $10,000 invested. Lower expense ratios preserve more of your returns.

Examples

  • 0.03% (very low)
  • 0.50% (moderate)
  • 1.5% (high)

Learn More

This term is covered in the following lessons: