Financial Glossary
TER
Total Expense Ratio: the annual cost of the ETF as a percentage. A TER of 0.07% means you pay €0.70 per €1,000 invested per year.
Explanation
Annual fee the fund manager deducts from the fund's NAV. Covers management, custody, and audit. Does not include bid-ask spreads or broker commissions. Passive ETFs typically have TER < 0.2%.
Technical detail
TER contributes to cumulative tracking error vs the index. In long-horizon strategies, a 0.1% TER difference compounds significantly. Compare TER + tracking difference (TD) for real total cost.
See also
Educational content. Not investment advice. Past results do not guarantee future returns.