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 charged by mutual funds is usually disclosed in the monthly fund factsheet of the scheme.
The Advisor share classes have a total expense ratio of 0.
The funds fall into S&P Fund Services' Index sector, a unique sector where the internal tracking error, total expense ratio and the bid-offer spread are examined.
Investors with an investment strategy that incorporates Qatari listed companies can now gain direct access to the market at one of the cheapest total expense ratios in Emerging Markets.

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