[{"data":1,"prerenderedAt":66},["ShallowReactive",2],{"term:expense-ratio":3},{"term":4,"related":53},{"id":5,"title":6,"body":7,"category":35,"description":36,"extension":37,"faq":38,"meta":39,"navigation":40,"path":41,"related":42,"seo":46,"stem":47,"takeaways":48,"__hash__":52},"terms\u002Fterms\u002Fexpense-ratio.md","Expense Ratio",{"type":8,"value":9,"toc":29},"minimark",[10,15,19,22,26],[11,12,14],"h2",{"id":13},"understanding-expense-ratio","Understanding Expense Ratio",[16,17,18],"p",{},"The expense ratio covers a fund's management and operating costs. It is deducted from fund assets, so it lowers returns directly.",[16,20,21],{},"Small differences compound: over decades, a 1% fee can cost far more than a 0.05% one.",[11,23,25],{"id":24},"example","Example",[16,27,28],{},"A 0.20% expense ratio costs $20 a year on a $10,000 investment.",{"title":30,"searchDepth":31,"depth":31,"links":32},"",2,[33,34],{"id":13,"depth":31,"text":14},{"id":24,"depth":31,"text":25},"investing","The yearly fee a fund charges, as a percentage of assets.","md",[],{},true,"\u002Fterms\u002Fexpense-ratio",[43,44,45],"etf","mutual-fund","index-fund",{"title":6,"description":36},"terms\u002Fexpense-ratio",[49,50,51],"The expense ratio is a fund's annual fee.","It is taken from fund assets, not billed separately.","Lower fees leave more of the return to you.","Ct2sxqkNreLoStWv-S44ucL_yMhEwJnvkLxyUnVFeQ8",[54,58,62],{"title":55,"description":56,"path":57},"Exchange-Traded Fund (ETF)","A fund that holds a basket of assets and trades on an exchange like a stock.","\u002Fterms\u002Fetf",{"title":59,"description":60,"path":61},"Index Fund","A fund built to match the performance of a market index.","\u002Fterms\u002Findex-fund",{"title":63,"description":64,"path":65},"Mutual Fund","A pooled investment managed by professionals and priced once a day.","\u002Fterms\u002Fmutual-fund",1793226379190]