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The investing glossary / Quick reference

Expense ratio: meaning and practical context

Annual fund operating expenses expressed as a percentage of fund assets.

Annual fund operating expenses expressed as a percentage of fund assets.

In practice

It is not an all-inclusive measure of investor cost. Spreads, commissions, personal taxes, and some other effects sit outside it.

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General financial education, not personalized investment or tax advice. Investing involves risk, including loss of principal.