What does TER mean?
TER stands for Total Expense Ratio and refers to the external administrative 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, TERs in our investment universe currently range from 0.03% to 0.76%. On average, they are 0.15% for a global portfolio – both for the free asset management solution and the Pillar 3a. For the sustainable investment universe, the value is slightly higher.
At True Wealth, we continuously look for the instruments with the lowest TERs, provided they also meet all other criteria such as liquidity, counterparty risk and tax efficiency.