What Is Expense Ratio?
From the SB Advisors Academy money glossary · Free, no signup
The annual fee charged by a fund to cover management and operating costs, expressed as a percentage of your investment. Lower is almost always better.
A worked example
A 1% expense ratio on a $50,000 portfolio costs you $500 per year. A 0.03% expense ratio on the same portfolio costs only $15. The difference compounds massively over 30 years.
Category
Part of the "Advanced Investing" group in the money glossary.