236 articles 4 sections last published 2026-09-09 independent · no sponsored placements

Measure

Expense ratio

Definition

The fund's stated annual operating cost as a share of assets.

How to read it

It is deducted continuously from the fund's assets rather than billed, so it appears as a shortfall against the index rather than a line item.

What it does not tell you

It is not the total cost of ownership. It excludes the bid-ask spread you pay to enter, the fund's own trading costs, tax drag from distributions, and it is not offset in the quoted figure by securities-lending revenue the fund earns back.

Applied in 203 articles

203

Every figure computed with this measure on this site follows the conventions set out in the methodology. All measures →