What is an expense ratio (MER)?

The management expense ratio (MER, or expense ratio in the US) is the percentage of your investment a fund takes each year to cover its costs.

You never get a bill: fees are taken directly from the fund’s value. That is why they are easy to forget.

Example: with a 1% expense ratio on $10,000, about $100 a year is deducted, whether markets go up or down.