The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

In funds, total expense ratio (TER) is the amount you’ll have to pay to hold an investment (like an ETF) for one year. This figure will come out of the fund’s performance rather than being separately invoiced to you.

Total expense ratio definition

In funds, total expense ratio (TER) is the amount you’ll have to pay to hold an investment (like an ETF) for one year. This figure will come out of the fund’s performance rather than being separately invoiced to you.

TER is shown as a percentage of the total assets managed by the fund.

TER only covers annual costs relating to the management of a fund. Whilst it is often the most commonly presented figure for comparing costs, some exchange traded fund (ETF) providers contend that an investor should look at the total cost of ownership (TCO) as a more comprehensive indicator of the total cost of holding an ETF. 

 

Learn more about ETFs

Find accumulated distribution ETFs using our ETF screener or learn more about ETF trading with IG.

A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms