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Expense ratio

Definition: [crh] The percentage of the assets that are spent to run a mutual fund (as of the last annual statement). This incluDefinition: des expenses such as management and advisory fees, overhead costs, and 12b-1 (distribution aDefinition: nd advertising) fees. The expense ratio does not include brokerage costs for trading the portfolio, although these are reported as a percenDefinition: tage of assets to the SEC by the funds in a Statement of Additional Information (SAI). The SAI is available to Definition: REF="/?rd=shareholders">shareholders on request. Neither the expense ratio nor the SAI includes the transactions costs of spreads,Definition: normally incurred in unlisted securities and foreign stocks. These two costs can add significantly to the reported expenses of a fundDefinition: . The expense ratio is often termed an Operating Expense Ratio (OER).

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