All terms
TER (total expense ratio)
A fund's or ETF's annual running costs as a percentage of the money invested.
TER stands for total expense ratio (German: Gesamtkostenquote). It covers running costs such as management, custody and the index licence. You don't pay it separately: it is taken directly from the fund's assets and reduces your return.
Example: with a TER of 0.20 %, an ETF holding of 10,000 euros costs you about 20 euros a year. An actively managed fund at 1.8 % would cost 180 euros.
The TER does not include order fees, spreads or trading costs inside the fund. So where and how often you buy also affects your total costs.