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)

Name Ticker Annual Report Gross Expense Ratio
ProShares UltraShort Telecommunications TLL 23.49
QuantShares US Market Neut Momentum MOM 22.47
AdvisorShares Gartman Gold/Euro ETF GEUR 10.72
ProShares UltraShort MSCI Mexico Cpd IMI SMK 9.12
ProShares Short Basic Materials SBM 8.08
Columbia Large Cap Growth ETF RPX 7.27
ProShares UltraShort MSCI Pacific ex-Jpn JPX 7.00
Direxion Daily Total Mkt Bear 1X ETF TOTS 6.92
Teucrium Sugar ETF CANE 6.26
ProShares Ultra High Yield UJB 5.91
JPMorgan Diversified Return Glbl Eq ETF JPGE 5.19
ProShares Merger MRGR 4.94
United States Copper Index CPER 4.76

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.

Name Ticker Morningstar Category Annual Report Gross Expense Ratio
RBC BlueBay Emerging Market Corp Bd A RECAX US OE Emerging Markets Bond 53.53
AB Market Neutral Strategy US A AMUAX US OE Market Neutral 26.87
RBC BlueBay Global High Yield Bd A RHYAX US OE High Yield Bond 25.84
Morgan Stanley Inst Global Insight A MBPHX US OE Foreign Small/Mid Blend 12.14
Astor Active Income ETF A AXAIX US OE Intermediate-Term Bond 11.59
HSBC World Selection Income Strat A HINAX US OE Conservative Allocation 10.14
Monte Chesapeake Macro Strategies A MHBAX US OE Managed Futures 9.22
Morgan Stanley Inst Insight A MFPHX US OE Mid-Cap Blend 8.91
First Trust/Confluence Small Cap Val A FOVAX US OE Small Growth 8.65
State Street/Ramius Mgd Futs Strat A RTSRX US OE Managed Futures 8.58

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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