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Expense ratio

German: TER

A fund’s annual running costs as a percentage of its assets.

The expense ratio isn’t billed separately; it’s deducted from fund assets day by day, so you only see it as a slightly lower return. Broad index ETFs often cost 0.03% to 0.20% a year, active stock funds commonly 0.5% to over 1%. Trading costs inside the fund and sales loads are not included.