All Glossary Terms
Fund Metrics

Expense Ratio

Definition

The expense ratio is the annual fee charged by an ETF or mutual fund, expressed as a percentage of assets under management. It covers management, administrative, and operating costs.

Formula

Annual Cost = Portfolio Value × Expense Ratio

Example

A $100,000 investment in a fund with 0.03% expense ratio costs $30/year. The same amount in a 1.0% fund costs $1,000/year — a $970 difference that compounds over decades.

How AllInvestView Uses This

AllInvestView displays expense ratios for ETFs and mutual funds on the detail page. Explore our ETF investing guide to understand how fees impact returns.