Total Expense Ratio

(redirected from Management Expense Ratios)

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 ?
For example, management expense ratios (MERs) for actively managed Canadian equity funds tend to average around 2.34%; for Canadian equity index-based funds, the average MER is 0.75%.
The average management expense ratios for each respective fund are as follows: 2.34% for the equity mutual fund, 0.8% for a no-load index fund and 0.18% for an exchange-traded fund.

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