What does TER mean?

TER stands for Total Expense Ratio and refers to the external administration costs of an ETF or index fund provider (e.g. for fund management, portfolio management, accounting, auditing and custodian bank fees). 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.