What is Expense Ratio?
Expense Ratio A measure of a fund’s total annual operating expenses as a percentage of assets under management, critical for assessing cost efficiency in mutual funds and ETFs.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Expense Ratio” Used in Practice?
Low expense ratios are a key consideration for institutional investors when constructing cost-efficient portfolios with index funds and ETFs.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Expense Ratio?
A measure of a fund’s total annual operating expenses as a percentage of assets under management, critical for assessing cost efficiency in mutual funds and ETFs.
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