Expense Ratio

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Expense Ratio

This is the ratio of expenses to assets of a fund. The expense ratio measures how much how much of a fund's assets are used for operation expenses or other administrative costs. An expense ratio is determined by dividing a fund's operating expenses by the average dollar value of its assets under management (AUM). As operating expenses increase, assets and return on investments decrease. It is also referred to as the management expense ratio (MER).

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