What does TER mean?

TER stands for Total Expense Ratio and refers to the annual management fee of an ETF or index fund (e.g. for fund management, portfolio management, accounting, auditing, and custodian bank fees). It is expressed as a percentage and is a key criterion for investors when selecting an ETF.

On average, the TER at True Wealth for a global, equity-oriented portfolio is 0.13% – this applies to both the untied wealth management solution and Pillar 3a. The figure is slightly higher for the sustainable investment universe.

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