Quick Answer: What is ETF Mer?

The management expense ratio (MER) – also referred to simply as the expense ratio – is the fee that must be paid by shareholders of a mutual fund or exchange-traded fund (ETF) … The management expense ratio is expressed as a percentage, reflecting the percentage of assets fee related to a fund’s investment portfolio.

What is a good MER for ETF?

High and Low Ratios

A good expense ratio, from the investor’s viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high. The expense ratio for mutual funds is typically higher than expense ratios for ETFs. 2 This is because ETFs are passively managed.

What is a good Mer?

The percentage you pay your investment manager may also be negotiable. … Aim for a “good MER” of 0.25% to 0.75% by investing in ETFs and using a private investment management firm to manage your portfolio.

What is a Mer?

1. Management expense ratio. The Management Expense Ratio (MER) represents the combined total of the management fee, operating expenses and taxes charged to a fund during a given year expressed as a percentage of a fund’s average net assets for that year. All mutual funds have an MER.

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Do ETFs pay dividends?

Here we road test the best Australian dividend ETFs and global dividend ETFs listed on the ASX.

Best Australian high dividend ETFs.

RDV
1 Year Total Return 41.13%
3 Year Total Return (P.A.) 5.32%
5 Year Total Return (P.A.) 6.70%
Dividend Yield 4.28%

What’s the difference between management fee and MER?

The MER, or Management Expense Ratio, consists of the management fee and all other costs associated with the running of the fund. … The management fee is the amount paid to the fund manager to make the investment decisions for the fund. The other costs are items such as administrative costs and custodial fees.

Do you pay Mer on ETFs?

ETFs have 2 main types of fees: … Management fees and operating expenses – Like a mutual fund, ETFs pay management fees and operating expenses. This is called the management expense ratio (or MER). MERs for ETFs are usually lower than those for mutual funds in the same class.

Is there a fee for ETF?

In contrast to mutual funds, ETFs do not charge a load. ETFs are traded directly on an exchange and may be subject to brokerage commissions, which can vary depending on the firm, but generally are no higher than $20. … And ETFs do not have 12b-1 fees.

Do ETFs have expenses?

As part of its normal operations, an ETF company incurs expenses ranging from manager salaries to custodial services and marketing costs, which are subtracted from the NAV. Assume an ETF has a stated annual expense ratio of 0.75%.

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Are Mer fees tax deductible?

Fees related to accounts that are tax sheltered, like RRSPs, RRIFs, pensions, or RESPs are never tax deductible. … Management expense ratios (MERs) for mutual funds or exchange-traded funds (ETFs) are also not deductible on line 221 either.

What are average MER fees in Canada?

The average management expense ratio (MER) you can expect to pay in Canada for equity mutual funds is 2.23%. To put this in perspective, if you have an investment portfolio of $100,000, you could be losing about $2,230 to fees every year on average!

Which mutual funds are best to invest now?

Here is the list of top 10 schemes:

  • Axis Bluechip Fund.
  • Mirae Asset Large Cap Fund.
  • Parag Parikh Long Term Equity Fund.
  • Kotak Standard Multicap Fund.
  • Axis Midcap Fund.
  • DSP Midcap Fund.
  • Axis Small Cap Fund.
  • SBI Small Cap Fund.
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