Glossary
Expense ratio
An expense ratio is the annual cost of owning a mutual fund or ETF, shown as a percentage of invested assets. A 0.20% expense ratio costs about two dollars per year for every thousand dollars invested, before market gains or losses.
Expense ratios are deducted inside a fund, so investors do not usually see a separate bill. The cost still matters because it reduces the return that reaches the account. A small percentage can become meaningful over years, especially when comparing similar index funds, target-date funds, or ETFs that track nearly the same market.
The ratio should not be reviewed in isolation. Some strategies cost more because they provide active management, specialized exposure, or tax handling. The practical question is whether the fund's cost is justified by the role it plays in the portfolio.
For a personal finance dashboard, expense ratios are part of keeping investment balances understandable. Nethaven focuses on giving brokerage holdings context inside net worth, cash flow, and long-term planning rather than treating an investment account as a disconnected number.
Use this in Nethaven
This term connects directly to how people review money in the app. See portfolio tracking for the related workflow.
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