An expense ratio is a fee (in the form of a percentage of one’s investment) that an investor pays annually for access to an ETF or mutual fund.

According to American Economist, Burton Malkiel, “The surest way to find an actively managed fund that will have top-quartile returns is to look for a fund that has bottom-quartile expenses.” Malkiel, ...

An expense ratio is the relationship of a fund’s total assets to other administrative and operating expenses. The expense ratio is taken from the fund’s gross return, cutting into potential profit ...

Low fund expense ratios are one of the best predictors of superior future returns. Lower fees and expenses leaves more money for investors. Meanwhile, commission-based advisors utilize higher expense ...

The expense ratio of funds matters. Back in 2010, Morningstar found that the best predictor of future returns was a low expense ratio. This beat every other indicator, including Morningstar stars.

But what counts as low? For index ETFs, expense ratios can now run just a few basis points (one "basis point" is 0.01%).

Running a mutual fund, like running any business, has certain costs associated with it, and every party that performs a function along the line needs to get paid somehow. But as Morningstar's John ...

The short answer to this question is "No, you cannot deduct fund expense ratios on your tax return." However, while these expenses aren't directly deductible, the reasoning behind this makes sense ...

Expense ratio represents the annual operating cost relative to assets under management. It reflects the operational expenses associated with running a fund. These costs can include portfolio ...

Add Yahoo as a preferred source to see more of our stories on Google. There are a handful of financial terms out there that every investor -- regardless of their level of involvement or portfolio size ...