ETF fees: TER and hidden costs

ETFs are cheap – but not free. Know these costs.

1. TER – the ongoing fund fee

The Total Expense Ratio is the key figure: the ETF’s yearly management cost in percent. It is deducted automatically from the fund – no separate bill.

Typical values:

Broad index ETFs (S&P 500, MSCI World): 0.05–0.25 %
Specialty/thematic ETFs: 0.3–0.7 %

Every ETF page shows the TER in the key facts.

Live data

Cheapest ETFs right now

ETF	Ticker	TER
State Street® SPDR® S&P® 500 UCITS ETF (Acc)	SPYL	0.03 %
State Street® SPDR® S&P® 500 UCITS ETF (Dist)	SPY5	0.03 %
iShares Core S&P 500 UCITS ETF (Acc)	SXR8	0.07 %
State Street® SPDR® MSCI EMU UCITS ETF	ZPRE	0.08 %
State Street® SPDR® MSCI Europe UCITS ETF	SPYE	0.08 %
Xtrackers DAX UCITS ETF 1C	DBXD	0.09 %
State Street® SPDR® MSCI All Country World UCITS ETF (Acc)	SPYY	0.12 %
iShares Core MSCI Europe UCITS ETF EUR (Acc)	IMEA	0.12 %

Auto-generated from the ETF database – updated daily.

2. Tracking difference – the real cost

The TER is only the expected fee. The tracking difference shows how far the actual ETF return deviates from the index – the most honest cost measure, though harder to find.

3. Trading costs

Order fee: what the broker charges per trade. Many neobrokers: 0–1 €, savings plans often free.
Spread: the gap between buy and sell price. Tiny for large liquid ETFs.

Why small percentages grow huge

Over long horizons, compounding magnifies costs too. For 200 €/month over 30 years at 7 %, the difference between a 0.20 % and a 0.70 % TER adds up to several thousand euros. Try it in the savings plan calculator .

Worked example

What 0.1 % more TER costs

€10,000 one-off, 30 years, 6 %/year before costs. Only the TER varies.

TER	Value after 30y	Costs you
0.10 %	55831 €	–
0.20 %	54271 €	−1560 €
0.30 %	52753 €	−3078 €
0.50 %	49840 €	−5992 €
0.70 %	47082 €	−8750 €

"Costs you" = shortfall vs the cheapest row (0.10 %). Run your own numbers in the savings-plan calculator.

Bottom line

Prioritise broad diversification first, then low cost. Between two equivalent ETFs, the fee measurably matters over decades.

This article is for information only and is not investment advice.