What Is An Expense Ratio Definition Wednesday, June 26, 4:34 PM ET
When looking at mutual funds, investors often ask, "What is an expense ratio?" The expense ratio looks at what it costs a company to operate the mutual fund. Typical items included in the fund's expenses would include fees paid to a manager, accounting, taxes, legal and auditing, and other related items. The ratio takes all of the expenses and divides by AUM, or net assets under management.
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