What is Expense ratio?
An expense ratio is the yearly fee a fund charges, expressed as a percentage of the money you have invested in it.
An expense ratio of 0.10% costs $10 a year per $10,000 invested. It is taken out of the fund automatically, so you never see a bill.
Why it matters to you
Small differences in fees compound into large differences over decades.
FAQ
What is Expense ratio?
An expense ratio is the yearly fee a fund charges, expressed as a percentage of the money you have invested in it.
What is a low expense ratio?
Broad index funds and ETFs often charge 0.10% or less a year.
All plain-English definitions → · Educational only, not investment advice.
