A fund’s expense ratio is listed as a percentage, and represents the percent of your investment that you are charged for investing in the fund. These rates vary wildly, but most won’t exceed 2.5%. For accurate expense ratio comparisons, examine the charges of funds in the same category. For example, compare the expense ratios charged by a high-yield funds with the average charges of high-yield funds in the Investment Company Institute table below, and not with say an emerging market equities fund or a municipal bond fund. They are strictly operational expenses. For example, let’s say that a particular mutual fund has an expense ratio of 0.50%. Unlike the sales charges, this cost applies to all mutual funds. Management Fees vs. Management Expense Ratio: An Overview . Expense Ratio. Expense ratios don't include transactional fees or costs related to sales, such as shareholder fees charged to buy or sell fund shares or to compensate brokers. At any point, you may want to sell some or all of your ownership in an annuity for cash. When researching or looking at information on ETFs or mutual funds, one of the first pieces of information to look for is the expense ratio. An expense ratio is an annual fee expressed as a percentage of your investment — or, like the term implies, the ratio of your investment that goes toward the fund’s expenses. An expense ratio is simply the ongoing cost of investing in a mutual fund or exchange-traded fund (ETF), and it’s charged as a percentage of the money you have invested the fund. Surrender Charges. Mutual funds are a great way to invest in the stock and bond markets without incurring specific stock risk. This will likely come with administrative prices, advertising and paying fund managers. An Expense Ratio is the fee charged by a fund (either a mutual fund or ETF) for managing the fund’s assets. An expense ratio reflects how much a mutual fund or an ETF (exchange-traded fund) pays for portfolio management, administration, marketing, and distribution, among other expenses. Whether or not you spend money on a mutual fund thru an employer-sponsored retirement plan or development Portfolio, you are going to undergo expense ratios. An expense ratio is the fund's annual operating expenses, expressed as a percentage of assets. The expense ratio, expressed as a percentage, is a management fee that is deducted from the fund's assets. The expense ratios quilt all charges related to an ETF or mutual fund. While these fees are relatively small for robo-advisors, they can be high for human financial advisors. Both of the investments have associated expense ratios. You'll almost always see it expressed as a percentage of the fund's average net assets (instead of a flat dollar amount). 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