Gross Expense Ratio - GER

What is the 'Gross Expense Ratio - GER'

The gross expense ratio (GER) is the total percentage of a mutual fund's assets that are devoted to running the fund. The gross expense ratio (GER) is exclusive of any waiver of fees or expense reimbursements. Likewise, it does not include "outside" expenses, like brokerage costs for trading the portfolio. These and other costs are reported in a Statement of Additional Information (SAI) that is sent to the SEC.

BREAKING DOWN 'Gross Expense Ratio - GER'

The GER is important because it more directly correlates to the fund's performance than the plain expense ratio does. For example, if a fund has an expense ratio of 2% and a GER of 3%, it is readily apparent that 1% of the fund's assets were used to waive fees, reimburse expenses or provide other rebates not included in the expense ratio. This is important because such rebates and reimbursements may or may not continue in the future. Prudent investors will want to examine both figures and compare them to like funds before investing.

RELATED TERMS
  1. After Reimbursement Expense Ratio

    The actual expense paid by mutual fund investors. The after reimbursement ...
  2. Before Reimbursement Expense Ratio

    The percentage of a fund's average net assets that is used to ...
  3. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  4. Capped Fund

    A mutual fund that has a limited amount of operating expenses ...
  5. Accountable Plan

    A plan for reimbursing employees for business expenses. Under ...
  6. Total Annual Fund Operating Expenses

    For a mutual fund or other type of fund management structure, ...
Related Articles
  1. Investing Basics

    ETF Gross vs. Net Expense Ratios: How They Differ

    If you're going to invest in ETFs, you should know the intricacies of expense ratios.
  2. Mutual Funds & ETFs

    Pay Attention To Your Fund’s Expense Ratio

    Even small differences in an expense ratio can have a big impact on a portfolio.
  3. Mutual Funds & ETFs

    Stop Paying High Mutual Fund Fees

    Discover how investment strategies and expense ratios impact your mutual fund's returns.
  4. Mutual Funds & ETFs

    Expense Ratio

    Expense Ratio
  5. Investing Basics

    4 Expensive Mutual Fund Mistakes to Avoid

    Mutual funds are a good way to balance your asset allocation but there some potentially expensive pitfalls investors need to be aware of.
  6. Options & Futures

    Overview Of Mutual Fund Expenses

    By Richard Loth (Contact | Biography)"In the mutual fund field, costs assume a tremendous importance for the long-term investor. Other things held equal, lower costs mean higher returns." -John ...
  7. Options & Futures

    Scoring Fund Cost and Expense Data

    By Richard Loth (Contact | Biography)The Morningstar and Value Line fund reports have multi-year expense ratio data and information on load and 12b-1 charges. In the case of the latter, you have ...
  8. Mutual Funds & ETFs

    ETF Fees and Waivers: The Devil Is in the Details

    ETFs are popular because of their low costs. But just how cheap they really are depends on whether there is a fee waiver and how often it is renewed.
  9. Mutual Funds & ETFs

    3 ETFs with the Lowest Expense Ratios (TFLO)

    Read detailed analyses of three exchange-traded funds (ETFs) that have low expense ratios, and learn about the pros and cons of these ETFs.
  10. Mutual Funds & ETFs

    Dollar-Cost Averaging With ETFs

    If you are investing small amounts regularly into an exchange-traded fund, be sure to do it right.
RELATED FAQS
  1. How do waivers, reimbursements and recoupments affect a fund's expense ratio?

    Understand what waiver, reimbursement and recoupment agreements in relation to a mutual fund mean for the management fees ... Read Answer >>
  2. When is an expense ratio considered high and when is it considered low?

    Discover what is considered an exceptionally high or low expense ratio for a mutual fund or ETF, and learn why this figure ... Read Answer >>
  3. Can mutual fund expense ratios be negative?

    Learn what an expense ratio is, and whether mutual funds, closed-end funds and exchange-traded funds can have negative expense ... Read Answer >>
  4. Why is a mutual fund's expense ratio important to investors?

    Understand the nature of mutual fund expense ratios, and learn why it is critically important for investors to be aware of ... Read Answer >>
  5. Do mutual fund trading costs hurt your bottom line?

    Find out how a mutual fund's expense ratio could be eating into your bottom line, what costs are included and an example ... Read Answer >>
  6. What kinds of expenses are included in the expense ratio?

    Understand the variety of costs and charges that are included in the total expense ratio assessed to investors using mutual ... Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center