All You Ever Wanted To Know About The TER But Were Afraid To Ask

A lot has been written about mutual fund Management Expense Ratios (MERs) and the impact on returns, but the Trading Expense Ratio (TER) tends to be ignored. It shouldn’t be, as it adds to fund costs and can provide valuable clues as to fund management. The TER is calculated by taking the sum of all the fund’s transaction costs, (including brokerage commissions the fund manager incurs when buying and selling securities (including derivatives), custodian transaction fees,...