What does TER mean?

TER stands for Total Expense Ratio and refers to the annual administrative costs of an ETF or index fund (e.g. for fund management, portfolio management, accounting, auditing and custodian fees). It is expressed as a percentage and is an important criterion for investors when choosing an ETF. Depending on the complexity of the asset class, the TER in our investment universe is currently between 0.03% and 0.76%. On average, they are 0.13% for a global portfolio – both for the wealth management solution and for Pillar 3a. The figure is slightly higher for the sustainable investment universe.

At True Wealth, we are constantly looking for the instruments with the lowest TER, provided they also meet all other criteria such as liquidity, counterparty risk and tax efficiency.