Gross Expense Ratio

Gross Expense Ratio is a financial metric that represents the total Operating Expenses of a mutual fund or exchange-traded fund (ETF) expressed as a percentage of its average net Assets. This ratio includes all expenses incurred by the fund, such as management fees, administrative fees, and any other costs associated with running the fund, but excludes any fee waivers or reimbursements.

For example, if a mutual fund has total Operating Expenses of $1 million and average net Assets of $100 million, the gross Expense Ratio would be calculated as follows:

• Gross Expense Ratio = (Total Operating Expenses / Average Net Assets) x 100
• Gross Expense Ratio = ($1,000,000 / $100,000,000) x 100 = 1%

Consider two funds:

• Fund A: Gross Expense Ratio of 0.80% with average net Assets of $200 million.
• Fund B: Gross Expense Ratio of 1.25% with average net Assets of $150 million.

In this case, Fund A has lower operating costs relative to its Assets compared to Fund B, indicating it may be a more cost-effective investment for Shareholders.