Quick Definition

Total Expense Ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, expressed as a percentage of the fund's total assets.

Formula

Examples

• 1A mutual fund with $100 million in assets and $1 million in annual operating expenses has a TER of 1%.
• 2An ETF that incurs $500,000 in expenses on $50 million in assets has a TER of 1%.
• 3A pension fund with $200 million in assets and $3 million in total expenses, including management fees and administrative costs, has a TER of 1.5%.

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