What is a good MER for ETF?

0.25\% to 0.75\%
Aim for a “good MER” of 0.25\% to 0.75\% by investing in ETFs and using a private investment management firm to manage your portfolio.

How is an MER calculated?

How do MERs work? The MER is expressed as a percentage of the average dollar amount of a fund investment. For example if an investor holds assets of $10,000 and the fund incurs annual costs of $78, the MER is 0.78\%.

What does Mer mean in finance?

Management expense ratio
1. Management expense ratio. The Management Expense Ratio (MER) represents the combined total of the management fee, operating expenses and taxes charged to a fund during a given year expressed as a percentage of a fund’s average net assets for that year. All mutual funds have an MER.

What is an average Mer?

The MER percentages I’ve chosen are actually the average of the most common investments and are broken down as follows: 2.5\% – Average mutual fund MER. 1\% – About the cost of using a robo-advisor or Tangerine investment funds. 20\% – About the cost of a self-directed ETF portfolio.

What are average MER fees in Canada?

Management Expense Ratio (MER) The average MER in Canada of all funds is 2.53\%. It is important to note that all rates of return are published net of fees. For example, if the fund shows a 10\% return in the paper, it actually earned 12.25\% but the MER was removed already.

How often do you pay Mer?

The MER is expressed as a percentage of the fund’s average assets for the year. However, instead of being subtracted annually in one shot, the MER is usually deducted on a daily (prorated) basis and is reflected in the net asset value of the fund.

Is Mer included in NAV?

The management expense ratio is not a fee directly charged to investors. Rather, it is deducted from the fund’s net asset value (NAV)

Do stocks have Mer?

Trading commissions – Like a stock, you will usually pay a commission to the investment firm every time you buy or sell an ETF. Management fees and operating expenses – Like a mutual fund, ETFs pay management fees and operating expenses. This is called the management expense ratio (or MER).

How often is Mer paid?

What is considered a good Mer?

A good expense ratio, from the investor’s viewpoint, is around 0.5\% to 0.75\% for an actively managed portfolio. An expense ratio greater than 1.5\% is considered high. The expense ratio for mutual funds is typically higher than expense ratios for ETFs.

Is Mer tax deductible in Canada?

Fees related to accounts that are tax sheltered, like RRSPs, RRIFs, pensions, or RESPs are never tax deductible. Management expense ratios (MERs) for mutual funds or exchange-traded funds (ETFs) are also not deductible on line 221 either.