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.
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|
|United States Copper Index||CPER||4.76|
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|
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