A good rule of thumb is anything below. The higher the cost ratio, the more it will affect your returns. The expense ratio is the percentage of investment that a fund charges each year to manage the money invested, such as when you Transfer 401k to Gold IRA. The expense ratio of a fund is equal to the fund's total operating expenses divided by the average value of the fund's net assets. Other costs included in a fund's spending ratio are taxes, legal fees, accounting and auditing, and record keeping.
A fund's expenses will be listed in its prospectus and on the company's website, and can be found on many financial websites. When comparing investments, keep in mind that there is no one-size-fits-all approach to mutual funds and ETFs, and expense ratios are just one component of an investment. Many online brokerages also have fund comparison engines that allow you to enter several fund indicators and compare your spending ratios and performance side by side.
