Expense ratio
Māori translation:
Definition
The expense ratio measures the costs of managing an investment fund, such as a mutual fund or an exchange traded fund (ETF). It represents the percentage of assets deducted annually to cover the fund’s expenses, like management fees, admin and operational costs. Investors usually prefer a lower expense ratio because it means more of their investment goes towards potential returns.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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