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What Is a Net Expense Ratio?

By Robin Hartill, CFP – Updated Aug 9, 2025 at 11:37PM

Key Points

  • Check both net and gross expense ratios when choosing funds; discounts may be temporary.
  • Aim for funds with low expense ratios to enhance investment returns over time.
  • Passively managed index funds may offer lower expense ratios, providing cost efficiency.

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