Total Expense Ratio


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Total Expense Ratio

A measure of an investment fund's costs of operation as a percentage of its total assets. It is calculated by dividing the fund's total costs by its total assets. As the total costs include things like management fees and commissions, the total expense ratio is important to determining the actual return on a fund. For example, a mutual fund may have a 10% return per year, which is quite high; however, if the total expense ratio is 8%, this means that shareholders only receive 2% of the return. It is also called the management expense ratio or simply the expense ratio.

Total Expense Ratio

The ratio of total housing expense to borrower income.

This ratio is used (along with other factors) in qualifying borrowers. See Qualification/Meeting Income Requirements/Expense Ratios.
References in periodicals archive ?
The total expense ratio of EQQQ is limited to 20 basis points (0.
The Company's total expense ratio for the six months ended June 30, 2003 was 25.
total expense ratio as a result of increasing premium volumes.
Operating performance for life operations will improve, primarily due to a reduction in the total expense ratio as a result of increasing premium volumes through bancassurance and cross-selling focus.
In an effort to keep the total expense ratio at or below the Fund's peer group average, Commerce Investment Advisors has contractually agreed to waive all of its management fee at least until October 31, 2003.
In keeping with Vanguard's low-cost philosophy, the three new ETFs have low total expense ratios.
We are confident that these funds have among the lowest total expense ratios in their peer groups.
Although today given that the annual Total Expense Ratios (TER) have come down on average to 37 bps for equity ETFs, they are embraced as a tool for core holdings, strategic holdings, tactical asset allocation and building blocks in fund of funds and multi-asset class strategies.
However, higher charges - either annual management charges or total expense ratios - do not seem to upset many of my clients who have enjoyed significant outperformance from most fund of funds over the last few years.
The problem, which came to light during a review carried out last October, relates to the so-called total expense ratios (TERs) which cover administration, service, audit and regulatory fees.
James Robinson, fund manager of Witan Investment Trust, said: 'These investment trusts are extremely good value for investors with very low total expense ratios - most below 0.
This translates over the next three to five years into a 'conservative' 3%+ increase in cost/income ratios correlated to a 2%+ uplift in total expense ratios (assuming profit pools remain at current levels).

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