There is a cost for an investment company to operate a mutual funds and ETFs. It includes the manager’s fees, administrative costs, compliance, trading costs, 12b-1 fees (sales fee for the company who sold you the fund) and advertising. The expense ratio is a percentage that directly lowers the return to a fund’s investors.

highest expese ratio mutual fund ETF

The expense ratio is a very critical number when comparing investments.  Some investments types will have a higher expense ratio others are just too expensive.  Here are the ETFs and Mutual Funds with the highest expense ratios.

ETFs (Exchange Traded Funds)

NameTickerAnnual Report Gross Expense Ratio
ProShares UltraShort TelecommunicationsTLL23.49
QuantShares US Market Neut MomentumMOM22.47
AdvisorShares Gartman Gold/Euro ETFGEUR10.72
ProShares UltraShort MSCI Mexico Cpd IMISMK9.12
ProShares Short Basic MaterialsSBM8.08
Columbia Large Cap Growth ETFRPX7.27
ProShares UltraShort MSCI Pacific ex-JpnJPX7.00
Direxion Daily Total Mkt Bear 1X ETFTOTS6.92
Teucrium Sugar ETFCANE6.26
ProShares Ultra High YieldUJB5.91
JPMorgan Diversified Return Glbl Eq ETFJPGE5.19
ProShares MergerMRGR4.94
United States Copper IndexCPER4.76

Mutual Funds

Our search for mutual funds only included A shares.  There are different share classes, some depend on the type of compensation the person who sold you the fund is getting (this may not affect you if you use no load funds or have a fee only financial planner) and the amount you invest.  Some companies, like Vanguard, offer a lower expense if you invest a certain amount (for example $10,000).  We are just looking at A shares.

NameTickerMorningstar CategoryAnnual Report Gross Expense Ratio
RBC BlueBay Emerging Market Corp Bd ARECAXUS OE Emerging Markets Bond53.53
AB Market Neutral Strategy US AAMUAXUS OE Market Neutral26.87
RBC BlueBay Global High Yield Bd ARHYAXUS OE High Yield Bond25.84
Morgan Stanley Inst Global Insight AMBPHXUS OE Foreign Small/Mid Blend12.14
Astor Active Income ETF AAXAIXUS OE Intermediate-Term Bond11.59
HSBC World Selection Income Strat AHINAXUS OE Conservative Allocation10.14
Monte Chesapeake Macro Strategies AMHBAXUS OE Managed Futures9.22
Morgan Stanley Inst Insight AMFPHXUS OE Mid-Cap Blend8.91
First Trust/Confluence Small Cap Val AFOVAXUS OE Small Growth8.65
State Street/Ramius Mgd Futs Strat ARTSRXUS OE Managed Futures8.58

I appreciate any feedback for our AIO Financial blog. Please contact me if you have any comments, questions, and suggestions. You can comment here or contact me through Facebook, Twitter, email (bill@aiofinancial.com), or call 520-325-0769.

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