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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The negative sector outlooks also reflect the challenges that both markets face, including regulatory scrutiny, high expense ratios and increasing attritional losses.
"In the third quarter, the Company's efficiency ratio and net operating expense ratios decreased to 61.4% and 1.85%.
"But once that was all done and you take a look at the results, the expense ratios remain high.
The firm announced Friday it was launching three new equity index funds and waiving the lower single-digit expense ratios through June 30, 2018.
According to the 2016 PLANSPONSOR Defined Contribution (DC) Survey, average asset-weighted expense ratios of all investment options in 403(b) plans are mostly in line with those of all DC plans.
Deutsche Asset Management (Deutsche AM) has announced reductions of the net expense ratios on a suite of US-domiciled global and emerging markets mutual funds, as well as management fee reductions on certain funds, the company said.
Which brings us to mutual fund expense ratios. There's a popular meme which implies you're better off picking a fund with a low expense ratio.
The new fund offers two low-cost share classes--investor shares and admiral shares--featuring expense ratios below the core bond fund category average expense ratio of 0.80 percent.
But the funds carry high expense ratios and trading costs, making them less appealing because small daily moves are not enough to justify the expense.
Federal Housing Administration-approved borrowers had average housing expense ratios of 28 percent.
Del Guercio, Dann, and Partch (2003) report that effective fund governance is associated with lower expense ratios. Cremers, Driessen, Maenhout, and Weinbaum (2005) report that governance plays a role in fund performance and funds with higher director ownership perform better.
Each offers experienced managers and competitive expense ratios. Moreover, Creuzot commends their "disciplined, consistent processes that have resulted in long-term performance relative to their peer groups."