TER (total expense ratio)
A fund's or ETF's annual running costs as a percentage of the money invested.
In short
As of 5 October 2026The TER (total expense ratio, German Gesamtkostenquote) is the annual running cost of a fund or ETF as a percentage of the money invested. It is taken directly from the fund's assets and reduces your return. At 0.20 percent, a 10,000 euro holding costs about 20 euros a year. Order fees and spreads are not included in the TER.
TER stands for total expense ratio (German: Gesamtkostenquote). It covers running costs such as management, custody and the index licence. You don't pay it separately: it is taken directly from the fund's assets and reduces your return.
Example: with a TER of 0.20 %, an ETF holding of 10,000 euros costs you about 20 euros a year. An actively managed fund at 1.8 % would cost 180 euros.
The TER does not include order fees, spreads or trading costs inside the fund. So where and how often you buy also affects your total costs.
Related terms
Sources
As of 5 October 2026 · Educational content, not investment or tax advice.